- Of all the 11 significant sectors under the S&P/ASX 200 index, eight closed in green today.
- The S&P/ASX 200 Financial sector, however, ended 0.812% lower.
- Financial sector has been quite volatile since past few days as it is impacted by factors like inflation and interest rate hikes.
- Businesses in Australia are likely getting impacted by Monkeypox too.
- This article features the performance of the ‘big four’ Australian banks amidst all the ongoing challenges in the country.
The S&P/ASX 200 Financial sector (INDEXASX:XFJ) was one of the worst performing sectors on the ASX on Tuesday. The sector ended 0.812% lower at 6305.2 points on the ASX today.
Factors impacting the Financial sector:
Inflation: The primary factor influencing financial sector is inflation. Rising inflation rate in Australia has been creating an alarming situation in the country and businesses and households are struggling amidst rising prices of commodities and negligible improvement in wages.
At present, the inflation rate stands at 6.1%. to curb the same, the Reserve Bank of Australia (RBA) is constantly increasing interest rates. In the last monthly RBA meeting, the organisation determined to further hike the interest rate by 50 basis points. Some expert analysts believe that inflation might touch 7% by the end of 2022.
Monkeypox threat: Australia has also been reporting confirmed cases of Monkeypox in past couple of months. The number seems to be rising with every passing day. This contagious virus causes acute rashes, fever, headache and weakness in people. There is a possibility that there could be another lockdown in the country to prevent the transmission of this virus, which will again impact businesses all across the globe.
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Here we talk about the ‘big four’ banks of Australia- ANZ, Commonwealth Bank, National Australia Bank, and Westpac; and analyse their performance on the ASX today.
Meanwhile, the S&P/ASX 200 Banks (INDEXASX:XBK) closed 1.501% lower at 2579.4 points on the ASX today.
Australia and New Zealand Banking Group Limited (ASX:ANZ)
Shares of Australia and New Zealand Banking Group Limited (ASX:ANZ), closed 0.916% lower at AU$22.700 per share on the ASX today.
In past one year, Australia and New Zealand Banking Group’s share price has fallen by almost 21% on the ASX. Meanwhile, the bank’s year-to-date share price fell over 18% (as of 4:10 PM AEST on the ASX today).
Commonwealth Bank of Australia (ASX:CBA)
The shares of Commonwealth Bank of Australia (ASX:CBA) ended in red today, at AU$101.280 per share after losing 1.286% on the ASX today (9 August).
Over the last 12 months, Commonwealth Bank’s share price has fallen 5% on the ASX. Its Y-T-D-based share price has fallen by 1.20% (as of 4:10 PM AEST on the ASX today).
National Australia Bank Limited (ASX:NAB)
Just like the other two ‘big four’ banks, shares of National Australia Bank Limited (ASX:NAB) also closed lower on the ASX today. The shares shed off 2.930% and ended at AU$29.810 per share.
In a year’s time, National Australia Bank’s share price has gained significantly by 10.53% on the ASX. On Y-T-D basis, National Australia Bank’s share price gained by 1.39% (as of 4:10 PM AEST on the ASX today).
Westpac Banking Corporation (ASX:WBC)
Westpac Banking Corporation (ASX:WBC) shares ended 0.770% lower at AU$21.900 apiece on the ASX on Tuesday.
In last 12 months, Westpac’s share price has fallen more than 14% on the ASX. On the contrary, Westpac’s YTD-based share price has gained by 1.11% (as of 4:10 PM AEST on the ASX today).