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Highlights
- The shares of the top four ASX-listed banking stocks have been in focus after the RBA raised interest rates this week.
- These four banks include Commonwealth Bank of Australia, National Australia Bank Limited, Westpac Banking Corporation, and Australia and New Zealand Banking Group Limited.
- The S&P/ASX 200 Financials Index (XFJ) closed 2.072% lower at 6054.100 on Thursday (June 9).
Just after Anthony Albanese took charge as the 31st Prime Minister of Australia last month, he had a myriad of challenges awaiting him; including inflation, hefty debt, mounting deficits, COVID-19 pandemic, an overstimulated economy and a lot more. Recently, after the Reserve Bank of Australia (RBA) hiked interest rates by as much as 0.50% - the highest in over two decades, PM Albanese said that his government would consider new policies to tackle pressures from rising inflation and interest rates.
On Thursday (June 9), the European Central Bank (ECB) announced its plan to raise rates in over a decade to combat persistent inflation. The ECB said Thursday that it would raise rates by 25 basis points in July to move the rates further in September. The Federal Reserve is expected to raise its interest rates by half a percentage point in its June meeting to be held next week.
Meanwhile, today the US consumer price index data will be released, which is expected to give investors some hint about the pace of the Fed's interest rate increase in the upcoming days.
Image Source: © Karenr | Megapixl.com
This week after the RBA announced a 50 basis points increase in interest rates taking interest rates to 0.85%, the financial sector was one of the worst-hit sectors. On Thursday (9 June), the S&P/ASX 200 Financials Index (XFJ) closed 2.072% lower at 6054.100.
Today, the Australian equity market extended yesterday's losses and opened 0.90% lower in the initial minutes of trading. In the early morning trade today, the shares of the ‘Big Four’ banks rose between 1-2.2% after a sharp sell-off earlier this week.
In this context, let us look at the share market performance of four ASX-listed banking majors, including Commonwealth Bank of Australia (ASX:CBA), National Australia Bank Limited (ASX:NAB), Westpac Banking Corporation (ASX:WBC), and Australia and New Zealand Banking Group Limited (ASX:ANZ).
Commonwealth Bank of Australia (ASX:CBA)
The shares of Commonwealth Bank of Australia (CBA) traded approximately 0.484% higher at AU$95.420 per share on ASX at 12:49 PM AEST today.
In the last one year, CBA shares have fallen nearly 6.32%, while the stock is down almost 6.93% on year-to-date (YTD). On Wednesday, after the RBA rose its rates, the Commonwealth Bank of Australia said it would increase its home loan variable interest rates by 0.50% per annum.
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National Australia Bank Limited (ASX:NAB)
National Australia Bank Limited shares were trading 0.283% higher at AU$28.330 per share on ASX at 1:03 PM AEST today. The ASX-listed financial services provider has a market capitalisation of AU$90.64 billion. In the last one year, the share price of National Australia Bank Limited has gained nearly 6.42%, while the stock is down almost 3.64% on YTD. NAB is expected to pay a fully franked interim dividend of AU$0.730 per share on 5 July.
Westpac Banking Corporation (ASX:WBC)
The shares of Westpac Banking Corporation are trading 0.188% lower at AU$21.130 per share on ASX at 1:12 PM AEST today. Westpac shares were in focus on Friday (10 June) after the company announced that it is considering a new Westpac Capital Notes offer (Offer) in the near future.
In the last one year, Westpac Banking Corporation has fallen nearly 20.53%, while the stock is down almost 2.45% on YTD. The company is expected to pay an interim dividend of AU$0.610 on 24 June.
Australia and New Zealand Banking Group Limited (ASX:ANZ)
The shares of Australia and New Zealand Banking Group Limited traded 0.171% higher at AU$23.390 per share on ASX at 1:23 PM AEST today. The company has a market capitalisation of AU$65.24 billion. In the last one year, ANZ shares have fallen nearly 18%, while the stock is down almost 16.46% on YTD.
The company is likely to pay an interim dividend of AU$0.720 per share on 1 July.
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