- RBA governor Lowe recently showcased his confidence on Australia’s resilience to faster rate hikes.
- ASX200 Banking index (XBK) has gained 1.11% in last five days.
- Stocks of big four banks - CBA, ANZ, NAB and WBC, along with peer MQG, appear on a recovery track.
Two days ago, RBA Governor Lowe signalled further rate hikes amid inflation and recessionary fears. However, he was confident on Australian economy’s ability to weather faster interest rate hikes. Investors anticipating recession, were cheered by RBA’s decision to base future rate hikes on economic indicators like household spends and employment rate.
Post Lowe’s speech, the sell-off in the banking sector appears to have paused. ASX200 Banking index (XBK) has went 1.11% up in last five days. In fact, on date of his speech (21 June), financial sector gained most on the ASX200 index.
Today the financial sector (XFJ) closed 0.732% higher on the ASX. Top Australian banks appear to be following the sectoral trend.
In this backdrop, let us look at the performance of National Australia Bank Ltd (ASX:NAB), Commonwealth Bank of Australia (ASX:CBA), Westpac Banking Corporation (ASX:WBC), Australia, New Zealand Banking Group Ltd (ASX:ANZ) and Macquarie Group Limited (ASX:MQG) on the ASX.
Commonwealth Bank of Australia (ASX:CBA)
Largest among the Australian big four banks is Commonwealth Bank of Australia. Its shares closed 0.200% up on the ASX today. While CBA shares were down over 14% in a month, it has gained 1.70% in last five days.
Westpac Banking Corporation (ASX:WBC)
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Westpac Banking Corporation’s share price closed today’s session at AU$19.620 apiece, up 0.460%. WBC share price has gained 3.65% in the last five days. Two days back, WBC also amended its Capital notes offering to facilitate a reinvestment option. Meanwhile, today the share price seems to be cheering the sectoral upside.
Australia and New Zealand Banking Group Ltd (ASX:ANZ)
ANZ shares closed 1.099% up at AU$22.070 apiece today. The banking group shares also appear tracing the banking sector index. While ANZ share price is down 13% over a one-month period, it has gained over 5% in last five days. Lacking any new ASX announcements ANZ share price seems to be faring well amid recessionary fears.
National Australia Bank Ltd (ASX:NAB)
Shares of National Australia Bank Ltd closed 0.518% up today. NAB share price has reversed some of the early losses and gained over 6% in last five trade days. While the company has only released its daily buy-back notification on ASX, NAB shares have bounced back to gains.
Macquarie Group Limited (ASX:MQG)
A peer to the big four Australian banks, Macquarie Group Limited closed 0.776% higher at AU$163.600 apeice today. In last month, MQG shares lost 8.51% however, it regained about 2.37% in past five days. MQG share price appears to be mainly tracing the recent banking sector trend. Recently it has also ceased to be a substantial holder in Charter Hall REIT. It has also completed a share allotment under the Macquarie Group Employee Retained Equity Plan (MEREP Awards).