ASX weekly: Commonwealth Bank, NAB, Westpac, ANZ rebound

A rebound in banking stocks, thanks to an unexpected federal election result, helped lift the Australian share market higher last week.

Big 4 banks

The benchmark S&P/ASX 200 closed 1.43% higher at 6,456 points, while the broader All Ordinaries index rose 1.33% to 6,546 points.

The Morrison Government’s surprise federal election win gave the market a strong start last week, with last Monday’s rally in banking stocks driving the market to its highest level since December 2007, according to CommSec.

Investment bank Morgan Stanley has increased its price target on the major banks, saying the election result had reduced risks related to “credit quality, the mortgage market and the regulatory environment.”

Labor had promised changes to negative gearing and the capital gains tax discount if elected, which some real estate groups and economists had warned could weigh on already weak house prices in Australia’s two largest markets: Sydney and Melbourne.

Over the course of last week, the financials was the best performing sector, rising by more than 6% to make up for the prior week’s slide.

The big four banks and retail giant Wesfarmers were among the top five biggest winners by market value.

Building products company CSR Limited had the highest share price gain for the ASX 200. Macquarie analysts say the company would likely benefit from the election result and the banking regulator’s plan to loosen home loan rules.

Shares in household consumer products distributor GWA Group also benefited from the stronger sentiment around the housing market, with its share price rising by more than 15%.

ASX 200 Listed Companies – Top 5 Biggest Market Cap Gains and Losses (17/05/2019 to 24/05/2019)
Biggest Gains Biggest Losses
Rank Company $ Change in Market Cap Closing Share Price % Change in Share Price Rank Company $ Change in Market Cap Closing Share Price % Change in Share Price
1 Commonwealth Bank of Australia (CBA) $9,470,781,362 $78.18 7.3% 1 BHP Group (BHP) -$2,975,309,908 $37.45 -2.6%
2 Westpac Banking Corporation (WBC) $9,342,917,473 $28.12 10.7% 2 Fortescue Metals Group (FMG) -$2,247,644,390 $8.22 -8.2%
3 Australia and New Zealand Banking Group (ANZ) $5,638,019,402 $27.84 7.7% 3 Woolworths Group (WOW) -$1,949,782,370 $32.70 -4.3%
4 National Australia Bank (NAB) $5,313,477,365 $25.81 7.9% 4 Woodside Petroleum (WPL) -$1,404,227,324 $35.70 -4.0%
5 Wesfarmers (WES) $1,439,977,107 $37.63 3.5% 5 Technology One (TNE) -$675,465,336 $7.17 -22.9%
Prepared by Canstar. Prices taken as of week to week close.

Leading share price losses was software company Technology One, with its shares tumbling by almost 23% to wipe more than $6.4 million from its market value.

The company’s half-year results were announced on Tuesday, and while first-half revenue and profit was strong, the outlook for full-year growth disappointed investors.

Travel business and flight comparison website Webjet was also in the red, with Citi analysts saying there could be “further weakness in bookings” following a profit warning at its troubled UK partner Thomas Cook.

ASX 200 Listed Companies – Top 5 Biggest Share Price Gains and Losses (17/05/2019 to 24/05/2019)
Biggest Gains Biggest Losses
Rank Company Closing Share Price % Change Rank Company Closing Share Price % Change
1 CSR (CSR) $4.14 20.0% 1 Technology One (TNE) $7.17 -22.9%
2 Lynas Corporation (LYC) $2.36 18.0% 2 Nearmap (NEA) $3.32 -13.3%
3 GWA Group (GWA) $3.60 15.8% 3 ALS Limited (ALQ) $7.19 -12.0%
4 NIB Holdings (NHF) $6.72 14.1% 4 Webjet (WEB) $15.01 -10.7%
5 Adelaide Brighton (ABC) $4.24 13.4% 5 Chorus (CNU) $5.39 -9.4%
Prepared by Canstar. Prices taken as of week to week close.

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