Why is the Bank of Queensland share price slipping again on Thursday?

Is this weighing on the Bank of Queensland’s stock today?

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Key points

  • The Bank of Queensland share price is struggling on Thursday, falling 1.5% to an intraday low of $7.78 
  • It comes as the company presents to the Macquarie Australia Investor Conference. Though, it's unlikely the presentation has weighed on its stock 
  • Meanwhile, the ASX 200 financials sector is suffering amid news the US Federal Reserve has implemented its biggest rate hike in 22 years 

The Bank of Queensland Limited (ASX: BOQ) share price is slipping amid news of rising international interest rates and the bank’s appearance at the Macquarie Australia Investor Conference.

And the bank’s stock is far from alone in the red. The S&P/ASX 200 Financials Index (ASX: XFJ) is the only S&P/ASX 200 Index (ASX: XJO) sector trading lower on Thursday.

At the time of writing, the Bank of Queensland share price is $7.82, 1.08% lower than its previous close.

For context, the ASX 200 is currently up 0.63%.

Let’s take a look at what might be going on with the bank’s shares today.

Why is the Bank of Queensland share price falling?

The Bank of Queensland share price is lower today despite the bank outlining progress made on its transformation.

It told the Macquarie Australia Investor Conference that it’s achieving growth and returns, it’s ahead of schedule in its acquisition of ME Bank, its digital transformation is bringing about advantages, and it’s on top of its cultural transformation.

However, the bank’s stock might be being weighed down by the broader finanical sector.

Right now, the ASX 200 financials sector is down 0.47%. The Bank of Queensland’s stock is coming in as the sector’s seventh worst performer.

The sector’s biggest weight is the Janus Henderson Group PLC (ASX: JHG) share price. It’s currently down nearly 14% following the release of its results for the March quarter.

Additionally, much of the index might be reeling from news that the United States Federal Reserve increased interest rates by 0.5% overnight.

The nation’s funds rate now has a target range of between 0.75% and 1%. The increase is an effort to reduce inflation.

Unfortunately, the Bank of Queensland share price slip comes just one day after the stock traded ex-dividend.

The bank’s shares slumped 2.71% on Wednesday as new investors missed out on securing its upcoming interim dividend.

That leaves it trading nearly 4% lower than it was at the end of last week.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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