It was another turbulent day for the S&P/ASX 200 Index (ASX: XJO) as a number of big-name ASX 200 shares crashed to new 52-week lows. The benchmark Aussie index plummeted a further 7.36% lower on Thursday as travel bans weighed on investors’ minds.
Find out why these 3 ASX 200 shares hit fresh lows as Aussie equities continued to fall lower yesterday.
Macquarie Group Ltd (ASX: MQG)
The Macquarie Group share price hit a new 52-week low of $111.78 per share on Thursday. ASX 200 banking shares have been under pressure after the RBA cut rates to a new record low of 0.50% in March. There’s a chance that the COVID-19 pandemic could see the central bank slash rates again next month.
Macquarie shares have performed well over a long period of time. However, global markets are particularly volatile at the moment, which could have an impact on Macquarie’s investment and capital markets earnings in FY 2020. This ASX 200 banking share is currently yielding 5.46%, but I’d keep an eye on Macquarie’s dividend this year.
Commonwealth Bank of Australia Ltd (ASX: CBA)
Macquarie was far from the only ASX 200 banking share under pressure, with Commonwealth Bank shares falling to $63.11 per share. The recent RBA rate cut could hit CBA’s earnings hard by compressing its net interest margin.
With the banks passing on the full 25 basis points cut to customers, that means less revenue for CBA and fewer profits for shareholders. CBA shares are down 30% in the last month after having hit a new 52-week high in late January.
Scentre Group (ASX: SCG)
The Scentre Group share price slumped to a new 52-week low of $2.70 on Thursday. Shares in the ASX 200 REIT crashed lower as the USA slapped travel bans on European visitors and Australia is reportedly considering doing the same.
The spread of COVID-19 could impact Scentre Group in a number of ways. General fear could mean less people visiting its Westfield shopping centres for fear of contagion. Additionally, less tourists could also restrict a big market of potential spenders at Westfield centres, which could put pressure on Scentre’s retail tenants and lower occupancy rates and earnings.
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Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Scentre Group. 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.
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