Standard Chartered share price has been on a stable upward trend for the past few days as investors brace for the Bank of England’s interest rate decision. The STAN stock price has jumped by more than 3% in the past week and nearly 7% in the past month. The British bank has a total market cap of £19 billion.
Standard Chartered share price has staged a strong recovery over the past few weeks, after a month of struggle, following the massive sell-off in the banking sector in March that saw the stock crash to record lows. The banking stock has climbed 10% in the year to date but remains nearly 15% below its highest level this year. Even so, investors seem confident in the stock’s outlook characterized by the soaring buying pressure.
Standard Chartered Plc has seen its value jump by more than 58% over the past three years, soundly beating the market return of 8.9%, excluding dividends. However, the bank’s most recent returns have not been that impressive, with the stock’s returns up by just 18% in the last year, including dividends.
The company’s dividend information shows that its earnings growth has exceeded the industry over the past year, while its cash is in a surplus of debt. Impressively, Standard Chartered has grown EPS by 25% per year over the last three years, increasing its demand among investors who prefer to buy shares in companies that are growing EPS. Even so, STAN’s dividend is low compared to other giant banks, forcing investors to remain cautious while buying the stock.
Focus will be on the Bank of England (BoE) which is slated to announce its interest rate decision for June later this week. Markets are pricing in a 25-basis point interest rate hike to 4.75% by the British central bank. The US Federal Reserve announced a pause in its rate hike campaign last week but announced that it will resume its fight against inflation next month.
Standard Chartered Share Price Outlook
The daily chart shows that the Standard Chartered share price has been on a bullish price correction for the past few days despite macroeconomic uncertainties. The stock has managed to move above the 25-day and 50-day moving averages, while its Relative Strength Index (RSI) moves higher toward the overbought zone.
Therefore, the Standard Chartered share price is likely to continue edging higher in the ensuing sessions as the stock’s buying pressure intensifies. The bulls will be eyeing the next support level at 700p, which will give them momentum to push the price higher to 733p. On the flip side, a move below the 25 DMA at 654p will invalidate the bullish thesis.