Australian shares plunge as businesses, borders close

The coronavirus pandemic is impacting the ASX, with the Australian share market dropping as businesses and borders close to control the spread of the infection.

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The Australian share market is again in freefall, spiralling towards its second worst day since the 1987 crash as the nation finally adopts a war footing to fight the spread of coronavirus.

It dove to a nearly eight-year low on Monday as borders close and businesses shut nationwide due to the coronavirus pandemic.

The benchmark S&P/ASX200 finished down 270.6 points, or 5.62 per cent, to 4,546.

The All Ordinaries index plunged 290.2 points, or 5.98 per cent, to 4475.8 as well.

One Australian dollar was buying 57.55 US cents, down from 58.82 on Friday when the share market closed.

Australian stocks dove to a nearly eight-year low on Monday as borders close and businesses shut nationwide due to the coronavirus pandemic. Picture: AAP

Earlier on Monday, a string of major companies axed their profit forecasts as states closed their borders and others order a shutdown of businesses across a suite of sectors.

With investors reeling, forced to rapidly come to terms with a new order as governments play catch-up amid the relentless march of the virus, the benchmark ASX 200 share index plunged more than 8 per cent.

If it remains at that level, it would mark the second worst day for the index since it was launched 20 years ago this month.

It would also be the second worst day for the broader market since the crash 33 years ago.

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The worst day since the crash came a week ago, when the ASX 200 plunged 9.7 per cent.

In today’s rout, about $120 billion has been cut from the value of the nation’s biggest companies.

The benchmark index was down about 400 points in morning trade at a seven-year low of 4415 points.

It also came as futures markets pointed to heavy falls on Wall Street tonight.

In the US at the weekend, politicians failed to agree on terms for a proposed $US1.2 trillion ($2.1 trillion) worth of stimulus to help the economy in the fallout from the pandemic.

Here, retailer JB Hi-Fi, property groups Stockland and Charter Hall Retail, financial services company Link Administration, gambling group Tabcorp and tollway operator Atlas Arteria are among companies to have axed their earnings forecasts this morning.

Theme park operator Ardent Leisure also announced it was closing venues including Dreamworld and WhiteWater World on the Gold Coast in response to restrictions rolled out to fight the spread of COVID-19.

Shares in the major banks have again tumbled today amid the shockwaves jolting the market.

The worst hit is Westpac, down 9.1 per cent about 11am, but even the best performing, the Commonwealth Bank, has shed a hefty 6.9 per cent.

Originally published as Australian shares plunge as businesses, borders close