AAP Finance

Australian shares now in correction mode

By AAP Newswire

Australia's share market is now in correction territory, having fallen more than 10 per cent over just six sessions amid fears over the economic and human impact of the Covid-19 coronavirus outbreak.

At 1110 AEDT, the ASX200 was trading down 3.3 per cent to 6,434.9, down 10.6 per cent from its intraday peak of 7,197.2 set on Thursday, February 20.

Since the start of this week - not including a modest decline last Friday - the ASX200 has dropped 686.6 points, or 9.62 per cent.

That puts it on pace for the worst weekly decline since a 734.8-point, 15.65-per cent decline in October 2008, during the global financial crisis.

The six days of losses have wiped out about $250 billion in value from the local share market.

"Short term, we've probably got more downside," said Nick Twidale, general manager of IC Markets in Sydney.

"I think investors will look to sell any rallies."

But for the medium term, the correction may look like a buying opportunity, Mr Twidale said.