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.
You can see the share prices of the Big Four below:
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.
For Money Morning