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
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• 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.

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Today, the Newcrest Mining Limited (ASX: NCM) share price is up almost 5% following the release of an exploration update by the company. The update reported strong drilling results from its Havieron and Red Chris sites. It’s preparing to expand known mineralisation during a time when gold is fetching $1733.31 per ounce.

Havieron

Newcrest commenced drilling at its Havieron Western Australia site in June 2019 and has continued to increase drilling activity since. It currently has 9 drill rigs in operation at the site with 20,200 metres drilled since the end of March 2019. This project is operated under a farm-in agreement and Newcrest now holds a 40% interest. Newcrest can earn up to a 70% joint venture interest in the project should it invest US$65 million and meet a series of exploration and development milestones by 2026.

According to the announcement, the drilling conducted at Havieron will expand known mineralisation by a further 220m. It also saw the best significant intercept at Havieron to date with 109m at 6.3g of gold per tonne.

In the report, Newcrest Managing Director and CEO, Sandeep Biswas said,

“We are excited by the drilling results at Havieron and Red Chris. At Havieron we have returned our best drill result to date and with the step out drilling result we see real potential to further expand this orebody. Getting underground is now the priority and we continue to progress the work to commence decline development by the end of this calendar year or early 2021.”

Red Chris

The Red Chris site is located in Canada and is a joint venture with Newcrest holding a 70% interest. The company has had an interest in this site since August 2019. Newcrest reported a total of 10,686 metres of drilling has been completed since the March quarter. Since the company entered the joint venture, this has equated to 40,069 metres of drilling. 

Drilling at Red Chris has been separated into 2 campaigns, one at the East Zone and one at Brownfields Exploration. The report stated, “Infill drilling at Red Chris has confirmed continuity of high grade within East Zone’. This positive news may have contributed to the increase in the Newcrest share price.

About the Newcrest share price

The Newcrest share price is up 44% from its 52 week low of $20.70. It is slightly up from its $29.82 price at the beginning of 2020. The Newcrest share price was looking hopeful before the coronavirus crisis hit. It has since recovered and is now $29.87 at the time of writing.

More reading

• ASX 200 drops 2%: Big four banks sink lower, JB Hi-Fi to deliver strong profit growth
• Why Aventus, Kogan, Newcrest, & Northern Star are pushing higher
• 5 things to watch on the ASX 200 on Thursday
• High gold price a boon for Silver Lake after latest drilling results
• ASX 200 Weekly Wrap: ASX bulls crash through 6,000 points

Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. 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 S&P/ASX 200 Index (ASX: XJO) has followed the lead of U.S. markets and is dropping notably lower on Thursday. In afternoon trade the benchmark index is down a disappointing 2.3% to 6,007.9 points.

Four shares that have fallen more than most today are listed below. Here’s why they are dropping lower: 

The Afterpay Ltd (ASX: APT) share price is down 3% to $52.78. This appears to have been driven by profit taking after some strong gains by the payments company this month. In fact, on Thursday the Afterpay share price jumped to a new record high of $54.85. When its shares hit that level, they were up a whopping 585% from their March low.

The Amcor PLC (ASX: AMC) share price has fallen almost 4% to $13.87. Investors have been selling the packaging company’s shares after it was downgraded by analysts at Credit Suisse. According to the note, the broker has downgraded its shares to a neutral rating with a $15.65 price target. It made the move on valuation grounds after a strong rally since March.

The Computershare Limited (ASX: CPU) share price is down over 6% to $13.15. The catalyst for this decline appears to have been a broker note out of Citi. This morning the broker downgraded Computershare’s shares to a sell rating with a reduced price target of $12.00. The broker believes trading conditions are challenging and expects it to be a couple of years until the company’s earnings rebound.

The Westpac Banking Corp (ASX: WBC) share price has sunk a sizeable 5% lower to $18.74. Investors have been selling Westpac and the rest of the big four banks on Thursday. This may be due to profit taking after some very strong gains over the last few weeks. Even after this decline, the Westpac share price is up 23% over the past three weeks.

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
• ASX growth companies including Zip Co cash in on the rise of e-commerce
• My share investing journey during the pandemic
• 3 ASX shares to buy now with $10,000

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO. The Motley Fool Australia owns shares of and 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.

The post Why Afterpay, Amcor, Computershare, & Westpac shares are dropping lower appeared first on Motley Fool Australia.

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