NAB Share Price Gets Bounce as Big Four Gain on Economic Hit Revision

Big green numbers for the Big Four banks today, with the National Australia Bank Ltd [ASX:NAB] share price up 5.54%, to $20.56.

The NAB share price wasn’t even the best of the bunch.

Commonwealth Bank of Australia [ASX:CBA] was up 5.15%, Australia and New Zealand Banking Group Ltd [ASX:ANZ] 6.88%, and Westpac Banking Corporation [ASX:WBC] up 6.55%.

You can see the share prices of the Big Four below:

nab asx

Source: tradingview.com

CBA continues to lead the way as the four companies snap an extended bout of sideways trading.

NAB issues notes, jobless rate to be less than expected

NAB issued $205 million in subordinated notes at a coupon rate of 3.3% today.

Meanwhile, Treasury secretary Steven Kennedy was quoted by the AFR as saying:

I think the unemployment rate won’t go as high as previously thought… I think the unemployment rate by September will likely to be in the order of 8 per cent.

The prior forecast was 10% by June and 9% by December.

With restrictions easing and the economy beginning to open back up, the enthusiasm is clearly flowing through to the Big Four’s share prices today.

Outlook for NAB share price, other Big Four bank stocks

No doubt, JobKeeper payments played a big role in softening the blow for the Australian economy.

I suspect the rollout had a big role in putting a floor under the share prices of the Big Four.

But with an end date in late September, the honeymoon may come to an end as Australia weans itself of artificial stimulus in favour of organic growth.

As such, the short-term outlook for the NAB share price and the other Big Four bank stocks is potentially more positive than the medium-term or long-term outlook.

The Australian economy is still in need of deep structural change as it begins to ‘unfreeze’.

And this change may turn the Big Four into dinosaurs in the coming decade.

Traders rejoice, investors be wary.

Regards,

Lachlann Tierney,
For Money Morning

PS: Bank Beaters! Three Aussie tech plays outsmarting the ‘Big Four’ banks.


Lachlann Tierney is an Analyst for Money Morning and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest their money wisely. Recently he has been working with Ryan Dinse. Lachlann is involved in two publications:


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