What's with the banks??

What's with the banks??? Australian banks are far from cheap. Investors will not get an argument about it from me. But banks' share prices are by far not as expensively priced as some commentators and experts are suggesting.?One recent development should have every investor's attention. CommBank (CBA) has decided to no longer neutralise dilution from its Dividend Reinvestment Plan (DRP), which indicates the bank is intent to use its current valuation premium to further strengthen its reserves/balance sheet, while allowing shareholders to suffer from dilution.??Rules of demand and supply apply inside the share market as much as they do outside of it. Assuming CBA's example will be adopted by the rest of the industry, I think this is the clearest sign that banks' share prices are likely to underperform the broader market this year. This does not mean they are cum a significant sell-off (which they are not).

1 topic

FNArena is a supplier of financial, business and economic news, analysis and data services.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment