ANZ Share Price Forecast as the Bull Run Stalls

The ANZ share price ASX came under pressure this week even after the hawkish statement by the Reserve Bank of New Zealand (RBNZ). It ended the week at $24.80, which was slightly below this month’s high of $26. This price is about 20% above the lowest level this year.

Is Australia & New Zealand Bank a good buy?

ANZ is the third-biggest bank in Australia after Commonwealth Bank and Westpac. The firm, which is now over 186 years old, has over A$978 billion in assets. It operates in more than 32 markets like Australia, New Zealand, Europe, and Asia. Most of its revenue comes from Australia followed by New Zealand.

The ANZ share price pulled back after the company took a contrarian view on energy financing. Unlike banks like Lloyds, the bank announced that it will increase its funding of heavy-emitting companies. The firm will increase its sustainable financing target to $100 billion by 2030. 

As part of this investment, the company will fund big emitters like Santos and Woodside. The two are some of the biggest emitters in Australia. In a statement, the company said that its funding will help these firms increase the pace of transition. Further, the bank will cut emissions by 26% by 2030 and to 0 by 2050.

ANZ, like the other big Australian banks are facing an uneven period. It has seen its net interest income rise as the RBA and RBNZ have increased their rates at the fastest pace in years. 

However, like other banks, the worsening economic situation has seen the company allocate more funds to cover defaults. Further, there are concerns about the property sector as home prices retreat.

The most recent results showed that ANZ’s profit after tax rose by 16% to A$7.1 billion. Its cash profit rose by 5% to A$6.5 billion. The firm also boosted its dividend per share t 146 cents. It also used its cash to acquire Suncorp. In a statement, the CEO said:

“Suncorp Bank is a well-run business that will see more than one million new retail customers join ANZ, sharing in the benefits of a wider range of products and services. It also means the Suncorp Group is able to focus on its core mission of being the best insurance company in Australia and New Zealand.”

ANZ share price ASX forecast

ANZ share price

The daily chart shows that the ANZ stock price has been in a bullish trend after it bottomed at $20 in June. It has moved to the 50% Fibonacci Retracement level. The coin has moved above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved above the neutral level.

The stock has formed a widening channel pattern, which is usually a bullish sign. Therefore, there is a likelihood that the stock will continue rising as buyers target the key resistance level at A$26.11. A drop below the support at A$24 will invalidate the bullish view.

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