The share prices of CBA (ASX: CBA), NAB (ASX: NAB), ANZ (ASX: ANZ) and Westpac (ASX: WBC) are all up over 1% today.
What’s going on with the banks?
The big four ASX banks have been some of the most volatile blue chips since COVID-19 started hitting the share market.
Despite rising today, the big banks are still down:
The CBA share price is down 30%.
The ANZ share price is down 38%.
The NAB share price is down 38%.
The Westpac share price is down 38%.
There are various worries. Lower profit margins (because of the record low interest rate), higher bad debts, payment holidays and NZ dividend bans. It will take time for these issues to be sorted out.
Some analysts have predicted that this is going to be more painful than the GFC in Australia. And China may not be able to come to the rescue this time.
What’s happening today?
No-one can really say why share markets move each day. The market is made up by a bunch of different buyers and sellers coming together each day. That’s what sets the price.
None of the banks have released any market sensitive news. At a guess it would appear that talk of opening up economies is getting investors excited. The global death toll is horrible. But it’s the economic effects that is causing the share market to be lower.
If economies start opening up then businesses and individuals can start earning again. The US is a big part of the global economy and its share market movements usually dictate which way the ASX goes day to day.
Is it time to invest in ASX banks? I don’t think so, I think there is too much pain to come, along with big dividend cuts. I’d rather buy shares of these technology shares:
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Disclosure: at the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.
