ASX drops $81bn as virus brings shutdowns

The shutdown of all non-essential services sent the benchmark to its lowest closing level since 2012.

Cafes, bars and other non-essentials are having to shut down. Picture: Tricia Watkinson

Local shares took a $81bn hit in Monday’s trade as investors mulled the impact of broad city shutdowns of all non-essential services, sending the benchmark to its lowest closing level since 2012.

Shares touched lows of 4402.5 after the shut down came into effect in Victoria and NSW at midday, while the larger scale lock down of New Zealand also rattled the market, raising the prospect of similar measures in Australia.

By the close, the benchmark ASX200 had clawed back some ground, finishing down 271 points, or 5.62 per cent, to 4546.

Meanwhile, the All Ordinaries closed down 290 points, or 5.98 per cent, to 4564.1.

Local shares tracked weakness across the rest of the Asia Pacific, as US futures traded limit-down following the blocking of its stimulus plan by Democrats in US Congress.

In China, the Shanghai Composite was off by a more moderate 1.6 per cent at the local close while the Hang Seng traded down 3.3 per cent and South Korea’s Kospi lost 3.4 per cent while Japan’s Nikkei added 2.7 per cent as cheaper yen against the dollar spurred buying in the market.

But worst across the region was the New Zealand market – closing down 7.7 per cent in its worst drop on record as Prime Minister Jacinda Ardern put in place a four-week lockdown to stop the spread of the disease.

“Volatility was supposed to start to calm down as central banks unleash a wrath of liquidity programs and stimulus, but coronavirus updates in Europe and the US continue to suggest we are nowhere near being out of the woods or even close enough to guess on when that could potentially be,” OANDA’s Edward Moya said.

“Circuit breakers have become far too common over the past four volatile trading weeks and will probably be used again this week.”

US futures hit limit-down trade at the open this morning, and Indian stocks too triggered a circuit breaker after they dropped 10 per cent.

At the local close, the Aussie dollar was down 0.41 per cent to US57.75c.

To equities, and selling of the major banks accelerated as credit concerns continue to linger.

Commonwealth Bank gave up 9.4 per cent to $54.26 to $54.26 as NAB traded lower by 11.4 per cent to $13.88, ANZ fell by 12 per cent to $14.10 and Westpac wound back by 10.6 per cent to $14.10.

Macquarie Group took a 15.3 per cent hit to close at $72.02 while Bendigo and Adelaide Bank fell 12.1 per cent to $5.67 and Bank of Queensland gave up 12.8 per cent to $4.85.

Retail names that had seen a boost last week gave back some ground – Woolworths fell by 2.7 per cent to $36.45, Wesfarmers gave up 6.8 per cent to $31.02 and Coles lost 7.2 per cent to $15.58.

Afterpay has continued to seesaw after heavy volatility last week – the former tech darling dropped by 28.5 per cent for the day to $8.90. Fellow tech heavyweight WiseTech added 1.7 per cent to $12 as Altium gave up 5.9 per cent to $24.67 and Xero ticked lower by 4.8 per cent to $58.75.

To the miners and BHP edged mildly higher – adding 0.1 per cent to $27.03 while Rio Tinto lost 4 per cent to $78.71 and Fortescue dialled lower by 7.7 per cent to $9.55.

Gold miners were the only fleck of positivity, buoyed by safe-haven demand. Newcrest lifted by 4.5 per cent to $22.73, Evolution added 0.8 per cent to $3.65, Northern Star put on 2.3 per cent to $10.97 and Saracen Minerals finished flat at $2.97.

Sydney Airport bounced from five-year lows early in the session to trade higher by 2.7 per cent at the close as it reassured investors of its debt position, while Qantas added 2.1 per cent to $2.41 and Virgin finished flat at 5.5c.