On Wednesday the S&P/ASX 200 index came under pressure again and dropped notably lower.
This led to a large number of shares sinking lower, with some even falling to 52-week lows or worse.
Three blue chip shares that reached these unwanted levels are listed below. Here's why they have just hit new lows:
The Australia and New Zealand Banking Group (ASX: ANZ) share price fell to a multi-year low of $23.07 on Wednesday. The big four banks came under pressure due to concerns over the impact that the Reserve Bank's cash rate cut will have on their net interest margins (NIMs). Analysts at Goldman Sachs have forecast another rate cut to 0.25% in April. They believe this will lead to sector NIMs falling 7 basis points in FY 2020 and then a further 8 basis points in FY 2021. In light of this, the broker has downgraded its earnings per share expectations for ANZ and the big four banks meaningfully over the next few years.
The Qantas Airways Limited (ASX: QAN) share price hit some turbulence and descended to a 52-week low of $5.02. Investors have been selling the airline operator's shares after the coronavirus outbreak escalated. A number of airlines across the globe have been cutting routes and capacity in an effort to combat a further slump in bookings. Late last month the International Air Transport Association warned that the coronavirus could cost airlines more than US$29 billion in revenue this year.
The Treasury Wine Estates Ltd (ASX: TWE) share price dropped to a multi-year low of $10.09 on Wednesday. As with Qantas, this share price weakness has been caused by the coronavirus outbreak. Investors have been selling the wine company's shares again after it withdrew its downgraded guidance for FY 2020 at the end of last month. Treasury wine made the move due to uncertainty around the impact of the coronavirus on its second half performance. Management advised that consumption in China has dropped off materially this month and expects this to remain the case until at least the end of March.
