Motley Fool Australia

Why BHP, CBA and 41 other ASX 200 shares are at 52-week lows

Source: Getty Images

S&P/ASX 200 Index (INDEXASX: XJO) shares including Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) slumped to 52-week lows on Monday.

Fears over the coronavirus outbreak and a 30% slump in oil prices put fear into investors yesterday. Saudi Arabia, OPEC and Russia continue to disagree on how to handle the oil market in the wake of the coronavirus epidemic.

However, the domino effect has begun and investors aren’t just worried about COVID-19 anymore. Markets are now pricing in an RBA interest rate cut in April to what would be 0.25%. There’s also the chance that the Australian economy could get tipped into a recession by the middle of the year. A recession is when an economy records two consecutive quarters of negative GDP growth, which is looking more and more likely.

Here are just five of the forty-three ASX 200 shares that are trading at 52-week lows right now.

BHP Group Ltd (ASX: BHP)

The BHP share price was one of the ASX 200 shares to be slumping lower on Monday. BHP shares fell 14.41% lower yesterday to a new 52-week low of $27.55 per share. BHP’s $95 billion market cap (now $81 billion) also weighed down the ASX 200 with concerns that slowing global economic growth will mean lower demand for iron ore and other key minerals.

Commonwealth Bank of Australia (ASX: CBA)

CBA shares slumped 6.47% lower to a new 52-week low of $69.15 per share on Monday. Investors sold out of the Aussie bank for two key reasons. Another likely RBA interest rate cut is likely to squeeze the bank’s profit margins even more in 2020. Meanwhile, fears over a recession mean that default rates could rise and asset quality could deteriorate.

Westpac Banking Corp (ASX: WBC)

The Westpac share price was another ASX 200 bank to hit a new 52-week low and is now down 19.44% for the year. Westpac shares are facing the same pressures as CBA with the Aussie banking sector feeling the heat right now.

Amcor PLC (ASX: AMC)

The Amcor share price fell to a new 52-week low of $13.26 per share on Monday. The ASX 200 blue-chip share fell 5.76% yesterday as investors fear for the global packaging industry in a potential downturn.

Brambles Limited (ASX: BXB)

Brambles shares are at a new 52-week low of $10.60 per share today after slumping on Monday. Disruptions in the global supply chain from the coronavirus outbreak have hurt the Brambles share price and sent the ASX 200 share plummeting 8.86% yesterday.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of February 15th 2021

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Amcor 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.

Related Articles…