Insights

Why is the NAB share price sinking on Thursday?

It’s another red day for NAB shares and its peers.
The post Why is the NAB share price sinking on Thursday? appeared first on The Motley Fool Australia. –

The National Australia Bank Ltd (ASX: NAB) share price is again heading south today.

At the time of writing, the banking giant’s shares are down 2.66% to $28.14. This means that in the past week, its shares have fallen more than 10%.

For context, the S&P/ASX 200 Financials Index (ASX: XFJ) is down 2.36% today to 6,036.2 points.

Shares in the other big four banks, Westpac Banking Corp (ASX: WBC), Commonwealth Bank of Australia (ASX: CBA), and Australia and New Zealand Banking Group Ltd (ASX: ANZ), are shedding 3.69%, 3.48%, and 2.07%, respectively.

What’s happening with NAB shares?

The NAB share price could be falling as banks continue to feel the knock-on effects of the Reserve Bank of Australia’s decision on Tuesday to raise the cash rate by 0.50%. All the major banks saw their share prices fall on Wednesday as investors digested the news.

There was also a non-price-sensitive announcement out of NAB after the market closed yesterday.

According to the update, NAB announced that it has allocated $2 billion under the capital notes 6 offer. Previously, the bank set aside around $1 billion.

The revised offer size appears to be from the heavy demand by participating syndicate brokers and institutional investors.

Furthermore, management disclosed that the margin will be at 3.15% per annum on the back of the successful bookbuild.

A replacement prospectus will be available for investors to view next Tuesday.

The capital notes are being issued as part of NAB’s ongoing funding and capital management strategy. Management will distribute the proceeds towards the bank’s general corporate and funding purposes.

There have been no changes to the capital notes 6 closing date, which is expected on 30 June 2022. Settlement will take place on 7 July, with the notes available for trading the following day.

NAB share price summary

While it has been a tough month for all banking shares, the NAB share price is up around 5% over the last 12 months.

However, when looking at year-to-date, its shares are down roughly 3%.

Based on today’s price, NAB commands a market capitalisation of roughly $96.62 billion.

The post Why is the NAB share price sinking on Thursday? appeared first on The Motley Fool Australia.

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More reading

What exactly is going on with ASX 200 bank shares and the RBA rate rise?
Why are ASX 200 bank shares plunging on Wednesday?
NAB share price backtracks amid $1 billion capital raise
What’s the outlook for the NAB share price in June?
2 top ASX dividend shares to buy according to analysts

Motley Fool contributor Aaron Teboneras 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 recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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