The S&P/ASX All Technology Index (ASX: XTX) launched at the end of February this year, right before the March market meltdown. The meltdown battered the All Technology Index, causing it to fall from above 2,000 to below 1,200. Since then, however, the index has staged a roaring recovery, climbing to nearly 2,200. The index sits at 2,075.20 at the time of writing. 

Market meltdown takes toll

Many of the major constituents on the Index were battered in the market meltdown. Afterpay Ltd (ASX: APT) fell nearly 80% from its peak, while WiseTech Global Ltd (ASX: WTC) fell more than 60%. Shares in Webjet Limited (ASX: WEB) fell 76%, EML Payments Ltd (ASX: EML) shares dropped 75%, and Domain Holdings Australia Ltd (ASX: DHG) shares fell 54%. 

V-shaped recovery

But since the March low point, the index has seen a V-shaped recovery led by strong surges in the share price of constituent companies. At the time of writing, Afterpay is now up more than 400% from its low, while the WiseTech Global share price has gained more than 100%. Webjet shares are up 100% from their low, EML Payments shares are up 208%, and Domain Holdings shares are up 95%. 

Following the recovery, the companies in the All Tech Index boast a combined market capitalisation of more than $100 billion. There’s no doubt the index had a rocky start, but it serves an important purpose. In the 5 years prior to its launch, the number of tech shares listed on the ASX doubled from 100 to over 200. The All Technology Index is designed to be a broader, more inclusive index than the previously existing S&P/ASX 200 Information Technology Index (ASX: XIJ), which only covers tech companies in the ASX 200. 

Impressive returns 

Despite its rollercoaster start, the All Technology index is seen as highly investable, with returns from investing in technology exceeding returns on the benchmark S&P/ASX 200 Index (ASX: XJO) in recent years. Over the 3 years prior to the launch of the All Technology Index, the ASX 200’s annualised total return was around 10%. Over the same period the technology companies that would have been in the All Technology Index (had it existed) would have returned over 20%.

Since the market low in March, ASX 200 has gained 32% (at the time of writing). The All Tech Index, on the other hand, has surged more than 75%, showing the strength of its constituent stocks. There is no doubt ASX technology shares are increasingly popular with investors. The All Technology Index will continue to provide an accessible option to invest in the sector and gauge its progress. 

More reading

• Should I keep my stake at the current Monadelphous share price?
• Top brokers name 3 ASX 200 shares to buy today
• Is the Scentre share price cheap today?
• Why Afterpay, Amcor, Computershare, & Westpac shares are dropping lower
• ASX bank share prices tumble as they aren’t out of the COVID-19 woods yet

Kate O’Brien has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO, Emerchants Limited, and WiseTech Global. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Emerchants 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.

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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX 200 shares are in the buy zone:

CSL Limited (ASX: CSL)

According to a note out of Credit Suisse, its analysts have retained their outperform rating and cut the price target on this biotherapeutics company’s shares to $323.00. The broker has reduced its earnings forecasts for FY 2021 and FY 2022 due to concerns that higher plasma collection costs could impact its margins. Nevertheless, it still sees a lot of value in CSL’s shares at the current level and has retained its outperform rating. I agree with Credit Suisse and feel that CSL is in the buy zone after its recent pullback.

Harvey Norman Holdings Limited (ASX: HVN)

Analysts at Goldman Sachs have retained their buy rating and lifted the price target on this retailer’s shares to $4.05. According to the note, Harvey Norman’s sales for the five months ended 31 May 2020 were stronger than it expected. And while the broker notes that the company has not revealed whether its strong sales growth has flowed through to the bottom line, it believes the announcement of a special dividend is an indication that this has happened. Outside this, it notes that its shares are trading on lower than normal multiples despite a strong gain over the last month. I think Goldman makes some good points and Harvey Norman could be worth considering.

Northern Star Resources Ltd (ASX: NST)

Another note out of Credit Suisse reveals that its analysts have upgraded this gold miner’s shares to an outperform rating with a $14.70 price target. The broker made the move after increasing its gold price forecasts through to 2022. And while there are many gold miners that will benefit from the strong gold price, it believes Northern Star is a top pick. Especially given its current valuation. I agree with Credit Suisse and believe Northern Star would be a good option for investors wanting exposure to gold.

More reading

• Should I keep my stake at the current Monadelphous share price?
• All Technology Index sees stunning comeback
• Is the Scentre share price cheap today?
• ASX bank share prices tumble as they aren’t out of the COVID-19 woods yet
• ASX 200 drops 2%: Big four banks sink lower, JB Hi-Fi to deliver strong profit growth

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. 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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The Scentre Group (ASX: SCG) share price has plummeted 6.51% lower today but is the ASX real estate investment trust (REIT) in the buy zone?

Why is the Scentre Group share price crashing lower?

The S&P/ASX 200 Index (ASX: XJO) has fallen 2.29% lower to 6,007.90 points at the time of writing. Scentre has dropped even lower in today’s trade despite no new announcements.

Scentre isn’t the only ASX REIT to be falling today. The Mirvac Group (ASX: MGR) share price is down 3.6% at $2.41 right now while Stockland Corporation Ltd (ASX: SGP) is down 5.63% to $3.69 per share.

ASX 200 shares have stabilised a lot since the bear market in February and March. However, I think the Scentre share price is one of the harder shares to value right now.

There’s a lot of uncertainty about Aussie real estate. That includes residential, office, commercial and industrial.

The Scentre share price is still down 36% this year despite a rally in recent weeks. Scentre owns and operates Westfield shopping centres around Australia and New Zealand.

That means Scentre is heavily focused on Aussie retail. Given the industry was struggling even before the coronavirus pandemic, there are still big question marks about a rebound in 2020 or 2021.

That means shares in ASX REITs like Scentre remain volatile. 

Is the Aussie REIT in the buy zone?

A 6.51% drop in one day’s trade means the Scentre share price may be cheap. However, I think it’s still a speculative buy right now given the current environment.

In contrast, today’s winners have largely been ASX gold shares.

The Northern Star Resources Ltd (ASX: NST) is up 7.46% today while Saracen Mineral Holdings Limited (ASX: SAR) shares have surged 5.65% higher.

It’s hard to say that there has been a fundamental shift in the Scentre share price from yesterday’s trade. That says to me that investors are still uncertain on where things are headed in the retail sector in 2020.

More reading

• ASX bank share prices tumble as they aren’t out of the COVID-19 woods yet
• ASX 200 drops 2%: Big four banks sink lower, JB Hi-Fi to deliver strong profit growth
• 3 ASX 200 shares I’d buy for 2020 and beyond
• What is the ASX impact of a fall in house prices?
• 3 great shares to buy now if you’re an ASX 200 investor in your 20s

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. 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.

The post Is the Scentre share price cheap today? appeared first on Motley Fool Australia.

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