View Full Version : Aussie Bank Share Price Decline
McGyro
29-09-2014, 12:24 PM
Anyone know why the sharp decline in prices over this month?
Nerves over the November government review report?
Valuations still look good.
Okebw
29-09-2014, 12:35 PM
NZ is fast tracking the third Basel accord relative to the rest of the world. Potentially the market pre-empting the decline in profits this will result in?
macduffy
29-09-2014, 02:05 PM
A number of possible reasons:
The Basle capital measures mentioned above. Note, however that the Aussie banks - parents of the big four in NZ - are questioning the "excessive" measures, given that they are already among the best capitalised banks in the world. May or may not wash with the authorities!
A perception that bank SP's have run a bit hard and are due for a correction, despite still showing good yields at current prices.
Biggest issue is probably the growing realisation that USA QE is coming to an end and will result in higher bond rates.
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