With insights into the week of the markets, with a key focus on banks and the ASX Banks Index, Siobhan Blewitt has been discussing the patterns and market changes.
- Banks weakness was the big story in Australia yesterday, with the ASX200 Banks Index finishing the day down -2.4%.
- Was quite a rare occurrence, only 7 other times in the past 12 months that the Banks have had a daily decline of -2% or more.
- What was most interesting about the move yesterday was that the broader market held up well despite weakness in the Banks.
- Can see the ASX200 finished the day down only -0.2% and the number of advancers to decliners was evenly balanced.
- That’s a change in pattern from the last 6 times that the Banks were down -2% or more, which also saw heavy declines for the ASX200.
- Points to a market that is in good health to withstand a setback from a group of stocks that is almost 20% of the index weight, but also reinforces that the Banks were long overdue a correction.
Source: Bloomberg, MST
In summary, this week has been a focus on banks and what is foreseen for the months ahead. To listen to Siobhan Blewitt discuss the current markets and finance, tune into Enterprise Breakfast with Libbi Gorr on Disrupt Radio at 7am Mondays.
To read more on weekly finance updates, the current markets and economic discussions, go to Insights | Frais Capital.
