- National Australia Bank shares were highly influenced by its sectoral performance today.
- Moreover, National Australia Bank shares might have suffered today due to the decision of RBA.
- NAB’s peers, other major banks in Australia, also posted losses on the ASX today.
The shares of National Australia Bank Limited (ASX:NAB) closed 2.282% lower at AU$28.250 per share on the ASX today (9 June). The company gathered a significant amount of investors’ attention as more than 11 million shares of National Australia Bank were traded in today’s trading session on the ASX.
The share price of National Australia Bank has gained over 6% on the ASX in the past 12 months. On the other hand, NAB’s year-to-date share price fell almost by 4% on the ASX. (As of 4:10 PM AEST, 9 June 2022).
Why did National Australia Bank’s share price close in red today?
National Australia Bank did not come up with any significant announcement today. However, there could be other factors which had influenced National Australia Bank’s share price on the ASX today.
ASX 200 Financial sector was one of the worst-performing sectors on the ASX today.
The S&P/ASX 200 Financials sector (ASX:XFJ) closed 2.072% lower at 6054.100 on the ASX today.
Therefore, we can say that one of the primary reasons behind NAB’s share price fall could be the sectoral influence.
Another significant reason that is likely to affect the share price of National Australia Bank could be RBA’s interest rate hike.
On Tuesday, the Reserve Bank of Australia (RBA) decided to raise the cash rate by 50 basis points to 0.85% in order to curb inflation.
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Moreover, the shares of the other major Australian banks, such as Australia and New Zealand Banking Group Limited (ASX:ANZ), Westpac Banking Corporation (ASX:WBC), and Commonwealth Bank of Australia (ASX:CBA), also buzzed in the red territory today.
In a non-price sensitive announcement yesterday (8 June), National Australia Bank revealed that it had allocated AU$2 billion under its capital notes 6 offer. Initially, the Bank had allocated around AU$1 billion.
The decision of revised the offer size was driven by the heavy demand of participating syndicate brokers and institutional investors.
The capital notes will be issued under NAB’s ongoing funding and capital management strategy. The generated funds will be used for the Bank’s general corporate and funding process.