S&P/ASX 200 Index (ASX: XJO) bank stocks are all well into the green again today, after a strong run yesterday.
Here's how the big four bank shares are tracking in morning trade:
- Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares are up 1.54%
- National Australia Bank Ltd (ASX: NAB) shares are up 1.59%
- Westpac Banking Corp (ASX: WBC) shares are up 1.42%
- Commonwealth Bank of Australia (ASX: CBA) shares are up 1.75%
Investor interest in ASX 200 bank stocks has surged amid the banking crisis unfolding in the United States and Europe.
When news of Silicon Valley Bank's collapse in the US first broke, bank shares largely sold off across the world. The big four were no exception. Investors also hit the sell button in the initial days of the Credit Suisse meltdown.
But with the Swiss government-backed deal for UBS to takeover Credit Suisse hitting the airwaves on Monday, and as the Federal Reserve opens its deep pockets to support US banks, investor sentiment has again turned positive.
And all this news looks to have driven a surge in online trading amongst the ASX 200 bank stocks.
Trades in the ASX 200 bank stock leapt 350% week on week
Online trading platform Tiger Trade reports that trades of Westpac shares increased by 350% week on week.
CBA shares saw a 114% increase in trades.
And while ANZ shares conversely saw a 34% fall in trades, the ASX 200 bank stock was the second most traded company on the platform.
"Bank stocks have been in the headlines for the past two weeks. Since SVB collapsed, the financial sector has been very volatile," Tiger Brokers Australia chief investment officer Brett Reynolds said.
"It's interesting to see Australian Tiger Trade users completing a large number of trades of stocks in this sector."
Reynolds noted that the ASX 200 banks are on much more solid footing than some of their US and European counterparts.
"Australian banks are in a very different position to overseas banks. Our banks are well capitalised and very sound," he said.
"For investors, they continue to offer a strong yield with franking benefits for many investors."
