MENU

Banks push ASX higher

The S&P/ASX 200 (ASX: XJO) (^AXJO) is up over 1% in early trade this morning, pushed up by strong US markets overnight and rating upgrades for many blue chips. Many of the banks have fallen disproportionately further than the index in recent weeks and as a result are paying healthier dividends and providing good earnings ratios.

This morning, shares in Suncorp (ASX: SUN) went sunny side up, rising over 6% on the back of a ratings upgrade and an announcement yesterday to remove all bad debts in the company. The shares have clung on to a 3.5% gain after falling slightly from their open. The sale of bad debts totalling $1.7 billion to investment Goldman Sachs (NYSE: GS) can only be seen as a good thing for long term investors and it appears that today the market has reacted to the news.

Macquarie (ASX: MQG) upgraded the diversified retail banking and insurance heavyweight to neutral from underperform, no doubt taking into consideration the long term prospects of the company.

ANZ (ASX: ANZ) has also had a significant bump up in prices, jumping 2.4% in early morning trade. The gains could be attributed to UBS (NYSE: UBS) placing a new rating on the stock, which is now a buy. In recent weeks the company has lost over 10% of its value in the midst of a market correction. Many investors still believe ANZ has significant growth opportunities overseas and no doubt many were waiting to enter into the stock this morning.

The Australian Financial Review says “good quality Australian shares that have a long history of paying dividends are a real alternative to a term deposit.” Get “3 Stocks for the Great Dividend Boom” in our special FREE report. Click here now to find out the names, stock symbols, and full research for our three favourite income ideas, all completely free!

More reading


Motley Fool contributor Owen Raszkiewicz owns shares in Suncorp and ANZ.

5 ASX Stocks for Building Wealth After 50

I just read that Warren Buffett, the world’s best investor, made over 99% of his massive fortune after his 50th birthday.

It just goes to show you… it’s never too late to start securing your financial future.

And Motley Fool Chief Investment Advisor Scott Phillips just released a brand-new report that reveals five of our favourite ASX stocks for building wealth after 50.

– Each company boasts strong growth prospects over the next 3 to 5 years…

– Most importantly each pays a generous dividend, fully franked.

Simply click here to find out how you can claim your FREE copy of “5 ASX Stocks for Building Wealth After 50.”

See the stocks now