Australian Market Records Market Boost For Lenders

Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.

The Australian market closed slightly higher on Thursday, July 21, 2022 after strengthening in its banking stocks while the energy stocks saw a decline. At the close of the trading hours, the S&P/ASX200 surged to 6,794.28, representing a slight increase of 0.52%. On a wider scale, the Ordinary share index also surged slightly to 7,018.40, which represents an increase of 0.62%.

Financial services firms were top gainers on the market, with Australian and New Zealand Banking taking the lead on the benchmark.

Additionally, other gainers include Westpac Banking Corp and Commonwealth Bank of Australia, with a 1.5% and 1.7% surge, respectively.

Energy Stocks Performed Poorly

Santos and Woodside had disappointing forecasts as energy stocks lost ground in the market

The shares of Woodside Energy slumped by 4.4%. The decline was expected after the major oil and gas producer delayed a project from BHP’s petroleum assets. Earlier this week, the company cut down on its production projections for the year.

Santos recorded a 1.9% decline in its shares after the firm reduced its production and sales targets for the year. But the firm recently recorded an increase in its revenue for the second quarter of the year.

Meanwhile, the Australian dollar against the U.S dollar was $0.6884, which is slightly lower than its level earlier this week.

Australia’s ANZ In Advanced Deal To Buy Suncorp For $3.3 Billion

In another development, Australia and New Zealand Banking Group have announced the acquisition of the banking arm of Suncorp Grup. According to the announcement, the deal is valued at A$4.9 billion (US$3.33 billion). The smallest of Australia’s top lenders is looking to revitalize its business after falling behind in the industry.

The deal will increase ANZ’s retail presence and expand its assets in mortgages, which are the most profitable businesses for Australian banks.

The company is looking to expand its operations in Asia. At the moment, the firm is looking to close the gap between Westpac Banking Corp and Commonwealth Bank of Australia in terms of market value.  The acquisition of the Suncorp subsidiary will give ANZ enough leverage to offer more diversified banking products to clients in Australia.

About Ali Raza PRO INVESTOR

Ali is a professional journalist with experience in Web3 journalism and marketing. Ali holds a Master's degree in Finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of leading cryptocurrency publications including Capital.com, CryptoSlate, Securities.io, Invezz.com, Business2Community, BeinCrypto, and more.