2018 has for the most part been a year to forget for CBA, well in fact it’s been a year that all the big four banks would like to forget I’m sure. CBA’s share price has fallen by over 10% within the last year, however the stock has been making a slow, but steady recovery over the last month. Find out why here...
For over a year, shares in our big four banks have been trending down. Go back even further, and their share prices have barely moved in a decade. In May 2017, Australia’s largest bank (and biggest stock), Commonwealth Bank of Australia [ASX:CBA], got within a whisker of $88. Fast forward to June 2018, CBA’s share price traded below $68 — a fall of around 23%. It’s not just CBA feeling the pinch, though.
I’m sure you’ve seen the news recently. Australia’s largest banks have been marred by scandal and an ongoing inquiry and settlement process. Therefore today’s stock movements may come as a surprise. At writing, ANZ is up just over 1.5% to 1.57%, from the previous close of 28.43 to 28.50.
AMP Limited’s [ASX:AMP] stock price dropped by 3.13% this morning, sitting at $3.56 at time of writing. But it hasn’t been a positive year for the financial services company, with steady decline and a major drop since May this year. AMP has fallen by nearly a third since the inquiry, a valuation loss of nearly two billion dollars.
Yesterday I mentioned that some of last year’s dog stocks could become winners. However, I won't be buying yet. A downtrend is a low probability play, no matter how appealing the value.
The Commonwealth Bank of Australia desperately needs to restore public trust and avoid negative publicity. This means splitting themselves up and creating a brand-new company called CFS Group. Will it work?
At time of writing, Macquarie Group Limited’s [ASX:MQG] shares are trading at just over $125.00, breaking their 52-week high of $125.290, which was hit only yesterday. As the largest Australian investment bank, and the top ranked merger and acquisitions advisor in the country, Macquarie Group rely on well-played market moves to secure their profits.
International currencies have all slipped against the US dollar. This means that global liquidity is tightening. So it's time to be cautious.
National Australia Bank Limited [ASX:NAB] dropped today by 1.27% ($0.35). As expected, due to the ongoing investigations conducted through the Royal Banking Commission, NAB has experienced a high level of volatility within the last 12 months. Stories of bad behaviour seem to be everywhere we turn.
With trade war tensions escalating between the US and China, it’s surprising to see that Aussie stocks have powered ahead. Ironically enough, we have a falling Aussie dollar to thank for this.