MENU

Why National Australia Bank Ltd (ASX:NAB) is among 4 shares falling today

Credit: NAB

The S&P / ASX200 (ASX: XJO) is 1.3% higher today after the US and China reportedly agreed to de-escalate a trade dispute between the two countries. It has been reported that Presidents Trump and Xi have agreed to a 90-day window over which the two nations can attempt to negotiate a definitive resolution to the dispute that could see the scrapping of trade tariffs recently imposed by both superpowers.

However, some shares on the local market are in the red today for a mixture of reasons. So let’s take a look at why this may be.

The National Australia Bank Ltd (ASX: NAB) share price is down 0.2% to $24.54 today despite the home loan lender releasing no news to the market. NAB shares are probably underperforming on news that house prices in Sydney (-1.4%) just posted their worst monthly performance since 2004. Prices in Melbourne also fell by 1% in November and bank shareholders could face more pain if house price falls continue through 2019.

The Metcash Limited (ASX: MTS) share price is down 3% to $2.68 after the IGA supplier, liquor and hardware business reported its underlying profit grew 1.2% to $100.3 million for the six-month period ending October 31, 2018. However, management warned that its supermarkets business still faced “highly competitive conditions” in a “challenging” environment. Its hardware and liquor business turned out decent results, but the outlook for the IGA operations may be worrying investors.

The Coles Group Limited (ASX: COL) finds itself on the losers’ list again today after its November 21 return to the ASX. Today the shares are down 2.2% to $11.45 after professional brokers and investment analysts handed in mixed assessments of the shares worth. Apparently, UBS valued the group at just $11.90 and initially put a “sell” rating on it when the shares recently traded above $12. Coles shares are also being reasonably heavily shorted by professional investors according to ASIC’s latest report.

The Newcrest Mining Limited (ASX: NCM) share price is down 1.2% to $20.50 as gold could fast lose its appeal to investors if the US / China trade war is amicably resolved and the UK negotiates a Brexit deal with the EU. Gold prices tend to rise at times of heightened geopolitical and economic uncertainty and fall when equity investors have more confidence. Newcrest is also a beneficiary of a weaker Australian dollar, however it has bounced today probably as markets price in a delay in the US rate hiking cycle.

Top 3 ASX Blue Chips To Buy For 2019

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked…

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of The Motley Fool’s Top 3 Blue Chip Stocks for 2019.

Each one pays a fully franked dividend. The names of these Top 3 ASX Blue Chips are included in a specially prepared FREE report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

See the 3 blue chip stocks

Motley Fool contributor Yulia Mosaleva has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and National Australia Bank Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.