Arab Today, arab today commonwealth bank shares plunge after trading update
Last Updated : GMT 00:07:53
Arab Today, arab today
Arab Today, arab today

Commonwealth Bank shares plunge after trading update

Arab Today, arab today

Arab Today, arab today Commonwealth Bank shares plunge after trading update

Commonwealth Bank
Sydney - AFP

Shares in Australia's largest listed firm Commonwealth Bank plunged almost six percent Wednesday, their steepest daily fall since the global financial crisis, after a soft trading update and fears the central bank's rate-cutting cycle is over.

The bank and other blue-chip firms have benefited from investors' search for yield, seeing their share prices strengthen over the past few years as a weakening economic climate led to interest rate cuts by the Reserve Bank of Australia.

The lower benchmark rates led to declining bank deposit returns, prompting investors to seek better money in the stock market.

Shares in Commonwealth Bank closed down 5.85 percent at Aus$82.98 in a return to levels last seen in November.

The Reserve Bank on Tuesday slashed the interest rate by 25 basis points to a new record-low of 2.0 percent to stimulate growth, but did not include an easing bias in its statement that could have foreshadowed further cuts.

"Interest rates won't be falling much more, so if interest rates start to go up, then the banks will re-price again," Bell Potter banking analyst TS Lim told AFP.

"So the yield story is becoming shaky."

Commonwealth Bank said Wednesday its unaudited net profit for the three months to March 31 was Aus$2.2 billion (US$1.75 billion), unchanged from the same reporting period last year.

Shares in another Australian banking heavyweight, Westpac, on Monday slumped 3.08 percent after it posted a worse-than-expected first-half net profit of Aus$3.61 billion.

Westpac stocks fell a further 3.66 percent Wednesday to end at Aus$33.99. Australia's two other big banks, the National Australia Bank and ANZ, saw their shares slip 2.68 percent and 2.67 percent respectively.

The banks have been churning out bumper profits over the past few years.

"Westpac was already quite soft and this sort of implies that the sector could be facing a lot more headwinds, and because CBA's the most expensive major bank it fell harder today," Lim added.

Investors have also been spooked by comments from financial regulator the Australian Prudential Regulation Authority on implementing a recent inquiry's recommendation that major banks be required to increase the amount of capital they hold as a buffer against mortgages "sooner rather than later".

Higher risk weights already apply to smaller lenders.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today commonwealth bank shares plunge after trading update Arab Today, arab today commonwealth bank shares plunge after trading update

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today commonwealth bank shares plunge after trading update Arab Today, arab today commonwealth bank shares plunge after trading update

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israeli court convicts Palestinians of 2016

GMT 04:39 2017 Tuesday ,17 October

Israeli court convicts Palestinians of 2016
Arab Today, arab today Iran's Facebook shuts down

GMT 23:50 2017 Monday ,16 October

Iran's Facebook shuts down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Anoshka happy for reactions to her talk show

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:55 2017 Thursday ,12 October

Safaa Sultan happy for “Love School”

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:25 2017 Saturday ,14 October

Squeeze on UK health gives advanced

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday