In the green: Why the NAB share price is rising on Wednesday

Is this bolstering the banking giant’s stock today?

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Key points

  • The NAB share price is outperforming on Wednesday, gaining 0.79% to trade at $28.01
  • Its gains come as the ASX 200 financial sector manages to dodge the broader market's downturn
  • Additionally, news a competing bank is closing its doors hit headlines today

The National Australia Bank Ltd (ASX: NAB) share price is outperforming the broader market on Wednesday despite the S&P/ASX 200 Index (ASX: XJO)’s giant’s silence.

It’s not alone in the green, however. Three of the ‘big four’ banks are also dodging today’s market downturn.

At the time of writing, the NAB share price is $28.01, 0.79% higher than its previous close.

For context, the ASX 200 is currently down 0.78% while the S&P/ASX 200 Financials Index (ASX: XFJ) is up 0.26%.

Let’s take a closer look at what might be going on with NAB and its peers on Wednesday.

NAB share price outperforms on Wednesday

The NAB share price is rising today as the bank’s home sector outperforms.

The financial sector is the market’s second-best performer today, behind only the S&P/ASX 200 Energy Index (ASX: XEJ) and its 0.75% gain.

ASX 200 financial stocks are currently led by the Insurance Australia Group Ltd (ASX: IAG) share price. It’s up 1.72% right now.

Meanwhile, the NAB share price is joined in green by those of Australia and New Zealand Banking Group Ltd (ASX: ANZ) and Westpac Banking Corp (ASX: WBC). They’re currently up 0.83% and 0.81% respectively.

Meanwhile, the Commonwealth Bank of Australia (ASX: CBA) share price is down 0.49%.

And while there’s been nothing but silence from the banking giants today, competition in the industry is about to lessen.

Neobank Volt has announced it’s shutting shop due to funding issues. It will soon close customers’ accounts, return all funds to depositors, and hand in its banking licence.

“Following the pandemic and the current challenging global economic climate we were unable to secure the funding needed to continue,” Volt’s website reads.

Today’s gains haven’t been enough to return NAB share price to the year-to-date green. It has slipped nearly 3% since the start of 2022.

Both the ASX 200 and the financial sector have fallen around 12% this year.

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 positions in and has recommended Insurance Australia Group Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. 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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