Insights

Here’s why the ANZ (ASX:ANZ) share price is up 4% in a week

What’s behind the share price gain?
The post Here’s why the ANZ (ASX:ANZ) share price is up 4% in a week appeared first on The Motley Fool Australia. –

Investors will be elated with how the Australia and New Zealand Banking Group Limited (ASX: ANZ) share price performed last week.

Shares in the banking giant closed Friday’s session at $29.53, marking a 4% gain for the week.

In comparison, the S&P/ASX 200 Index (ASX: XJO) only managed to crawl 1.2% higher for the week.

It’s not very common to see the share price of a big bank like ANZ outperforming the broader index.

Let’s take a look at what’s been fueling the ANZ share price this past week.

What’s been fueling the ANZ share price?

Several catalysts helped propel the ANZ share price higher last week.

First and foremost was a strong full year result from its rival Commonwealth Bank of Australia (ASX: CBA).

With CBA splashing $10 billion on dividends and buybacks, investor sentiment towards the banking sector as a whole lifted substantially.

A second catalyst that boosted the ANZ share price last week was the appointment of a new Chief Financial Officer (CFO).

The banking giant appointed Farhan Faruqui as its new CFO last week.

ANZ’s management highlighted Mr Faruqui’s accomplishments and experience, painting a positive outlook for the bank’s future.

Outlook of the ANZ share price

Last week’s strong performance capped off a stellar year thus far for the ANZ share price.

Shares in the banking giant have soared nearly 30% higher since the start of the year.  

With general improvement in credit conditions, this price action highlights the bullish sentiment for the overall banking sector.

Given the strong full-year result posted by CBA last week, investors will be keeping a keen eye on how other banks have performed.

With its strong capital position and cost reductions, ANZ is expected to follow suit and provide investors with a generous dividend yield.

In a recent note from broker Bell Potter, analysts initiated a buy rating on ANZ with a $30 share price target.

The broker also expects ANZ to continue to pay out a fully franked dividend per share of 140 cents in FY 2021.

Analysts also forecasted a payout of 146 cents in FY 2022 and 154 cents in FY 2023, reflecting an average 5% dividend yield.

As a result, the ANZ share price will receive extra attention this reporting season.

ANZ is expected to release its results for the financial year on Wednesday the 18th of August.

The post Here’s why the ANZ (ASX:ANZ) share price is up 4% in a week appeared first on The Motley Fool Australia.

Should you invest $1,000 in ANZ right now?

Before you consider ANZ, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and ANZ wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

ASX 200 Weekly Wrap: New records just keep coming for the ASX 200

2 buy-rated ASX dividend shares for income investors

Its been a great week for the ANZ (ASX:ANZ) share price so far
Analysts name ANZ (ASX:ANZ) and this dividend share as buys
Westpac (ASX:WBC) share price lags the big banks’ after NZ ‘formal warning’

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!