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Aussie share market suffers another horror day, loses $430 billion in three weeks

Published: (Updated: ) in Australian News by .

The benchmark S&P/ASX 200 finished another horror day of trade down 421 points or 7.36 per cent, placing the market back to where it was in November 2016.

The Australian share market has lost more than $430 billion in less than three weeks as the coronavirus outbreak threatens to erase more than four years of gains.

The benchmark S&P/ASX 200 finished another horror day of trade down 421 points or 7.36 per cent, placing the market back to where it was in November 2016.

Primary drivers for the freefall included Trump's 30-day travel ban between the US and Europe, lacklustre US economic stimulus measures and dramatic news that the NBA season will be suspended.

READ MORE: Tom Hanks diagnosed with coronavirus while in Australia

OPTIMISM PERSISTS

Australia's share market is battered and bruised but could recover in a year if the coronavirus outbreak is quickly contained, one fund manager says.

"Once we're over that, I think you'll actually move there pretty quickly because you've got tailwinds on monetary and fiscal stimulus, you're got very low interest rates," said Paul Taylor, who manages the $5 billion Fidelity Australian Equities Fund.

"People will then focus away from the coronavirus risk to the low cost of capital and I think people would move very very quickly.

READ MORE: Australian government to reassess travel ban to Europe

"The other thing we're seeing is - the world is awash with money," Mr Taylor told journalists at a lunch meeting in Sydney on Thursday.

With interest rates so low, there's really no alternative to equities to finding yield and Australian equities are now offering attractive yields of four to five per cent, fully franked, he said.

"When we get over the coronavirus it'd go back to seven pretty quickly I'd think," he said, referring to the ASX200 index, which has fallen from nearly 7,200 to around 5,300 in three weeks over fears from the pandemic.

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While it took the ASX a dozen years to recover from the global financial crisis, the quality of company balance sheets is much healthier this time around, he said.

Source: 9News https://www.9news.com.au/national/asx200-loses-billions-in-consecutive-horror-trading-day/a9084380-6a78-4aef-8a17-f0b4b242c4c2

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