Why AMP, CBA, Northern Star, & Vicinity shares are dropping lower

AMP Limited (ASX:AMP) and Commonwealth Bank of Australia (ASX:CBA) shares are two of four dropping notably lower on Thursday…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is fighting hard to remain in positive territory after giving back a good portion of its morning gains. At the time of writing the benchmark index is up 0.35% to 5,015.3 points.

Four shares that are acting as a drag on proceedings today are listed below. Here's why they are dropping lower:

The AMP Limited (ASX: AMP) share price is down 2.5% to $1.11. This morning the embattled financial services company withdrew its FY 2020 guidance due to the coronavirus outbreak. AMP had previously forecast that total investment spend would be between $450 million and $650 million in FY 2020. And after adjusting for the AMP Life sale, FY 2020 underlying profit was expected to be similar to what it achieved in FY 2019.

The Commonwealth Bank of Australia (ASX: CBA) share price is down almost 4% to $60.08. Investors appears to be taking profit on the big four banks on Thursday after some strong gains this week. At the time of writing, all four major banks have given back their morning gains and are in the red.

The Northern Star Resources Ltd (ASX: NST) share price has crashed 12% lower to $11.93. Investors have been selling the gold miner's shares following the release of an update this morning. According to the release, the company has withdrawn its guidance and deferred the payment of its dividend until October. Management made the move due to the uncertainty caused by the coronavirus outbreak.

The Vicinity Centres (ASX: VCX) share price has dropped almost 7% to $1.04. Investors appear concerned by the growing number of retailers that have decided to close their doors for the next few weeks. In addition to this, one of those retailers, Premier Investments Limited (ASX: PMV), this morning revealed that it intends to pay no rent whilst its shops are closed.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Fallers

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A worried man holds his head and look at his computer.
Share Fallers

Why 29Metals, Brainchip, Platinum, and Premier Investments shares are falling today

These ASX shares are having a tough time on hump day.

Read more »

Man with his head in his head because of falling share price.
Share Fallers

Why 29Metals, Atlas Arteria, IDP Education, and Mineral Resources shares are falling

These ASX shares are having a tough time on Tuesday. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why ALS, EOS, NRW, and Patriot Battery Metals are dropping today

These ASX shares are starting the week in the red.

Read more »

A man looking at his laptop and thinking.
Technology Shares

Why are these ASX tech shares getting smashed today?

Owners of these two stocks are missing out today.

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Share Fallers

Why AGL, Brickworks, IGO, and New Hope shares are dropping today

These ASX shares are having a poor session. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Amcor, Arafura, Brainchip, and South32 shares are tumbling today

These ASX shares are having a tough time on hump day. But why?

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Aussie Broadband, Liontown, Metals Acquisition, and Seek shares are falling

These ASX shares are having a poor session. But why?

Read more »