Finally, the banks have outperformed the index. Two catalysts: a shocking result from Citigroup in the US, while Westpac feasts on mutton.
For the first time since the credit crunch began in earnest, the big five Australian banks have outperformed the index for the week in a meaningful way. Finally all the analysts who queued up to say "defensive" like trained parrots have had their moment in the sun. But then a stopped clock is always right twice a day.
The big five averaged a 4.2 per cent rise, spread between Commonwealth at 2.7 per cent and ANZ at 5.3 per cent, at yesterday's close against a 2.8 per cent rise in the ASX 200 over the week. The average rankings remained intact for yet another week and there was only one recommendation change. Credit Suisse marked Commonwealth Bank up from Underperform to Neutral following a mark to market of its assets at the end of September. No one asked how the SIVs were valued.
Relative movements for the week ending 3 October 2007:
ANZ +5.33 per cent
National +5.05 per cent
Westpac +4.32 per cent
St George +3.73 per cent
CommBank +2.68 per cent
ASX 200 +2.76 per cent
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