Why did the ANZ (ASX:ANZ) share price struggle last month?

The big banks have benefited from hot running Aussie property markets.
The post Why did the ANZ (ASX:ANZ) share price struggle last month? appeared first on The Motley Fool Australia. –

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price lost 5.1% last month. Shares closed October trading for $28.14 and finished November worth $26.70

By comparison, November saw the S&P/ASX 200 Index (ASX: XJO) down 0.9%.

Below, we take a look at some of the factors moving the ANZ share price last month.

What happened to the ANZ share price in November?

ANZ kicked off November with a strong calendar year behind it. Having recovered from some tough times in 2020, the ANZ share price was up 24% year to date on 1 November.

While 2020 saw the bank cut its full year dividend to 60 cents, it paid an interim dividend of 70 cents per share, fully franked, in July this year. The move would have been welcomed by investors.

Although shares finished the month down, analysts over at Macquarie came out with a positive outlook for the bank.

As The Motley Fool reported on 4 November, Macquarie cited better-than-expected margins and income from markets in ANZ’s 2H FY21 results. Acknowledging that home lending figures were below expectations, the analyst said this news has likely already been priced into the market. The broker retained its outperform rating, with a $29.50 target for the ANZ share price.

Share prices tend to drop ex-dividend

One of the factors pulling down the ANZ share price in November was that the bank went ex-dividend on 8 November. The bank will pay a final dividend of 72 cents per share, 100% franked, on 16 December. But only to shareholders who held shares on or before 7 December.

It’s quite standard for a company’s share price to drop by a similar amount to its upcoming dividend payment on the day it goes ex-dividend.

Finally, the ANZ share price didn’t appear overly impacted by news of a lawsuit brought by the Australian Securities and Investment Commission (ASIC) and reported on 26 November.

As my Foolish colleague Tristan Harrison wrote on the day, “ASIC has launched a civil penalty proceeding relating to three unlicensed third parties providing home loan application documents to ANZ lenders, including in connection with ANZ’s home loan introducer program.”

From the release of that announcement on 26 November through to the end of the month, shares in ANZ lost 2.1%.

The post Why did the ANZ (ASX:ANZ) share price struggle last month? 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

ANZ Bank (ASX:ANZ) spruiks $400m tech rebuild with mortgage approval in 10 min

What happened for the ANZ (ASX:ANZ) share price in November?

Can NAB (ASX:NAB) shares ever close in on CBA’s market cap?

Leading brokers name 3 ASX shares to buy today

Why ANZ Bank (ASX:ANZ) is losing market share to other big ASX banks

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 recommended Macquarie Group Limited. 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!