ASX financial shares closed higher on Thursday, with the S&P/ASX 200 Financials Index (ASX: XFJ) up 0.29% to 9,030.7 points.
By comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) rose 0.15%.
The financials index has fallen 9.5% since it peaked at a historical high of 9,978.4 points in October.
The steeply declining Commonwealth Bank of Australia (ASX: CBA) share price has contributed to the sector's fall.
Not to mention the sharp turnaround on interest rate expectations due to resurgent inflation and economic growth.
The markets are now pricing in a 27% chance of a rate hike after the next Reserve Bank meeting on 3 February.
Let's check out some new broker recommendations on ASX financial shares.
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2 ASX financial shares to sell
On The Bull this week, experts reveal two ASX financial shares to sell now.
QBE Insurance Group Ltd (ASX: QBE)
The QBE share price closed at $19.15 on Thursday, down 0.1% for the day and down 18.3% over the past six months.
Jabin Hallihan from Family Financial Solutions has a sell rating on QBE.
Hallihan explains:
Shares [are] trading at a premium to our fair value estimate of $16.50, despite falling from its June highs.
In our view, the company faces margin pressure from pricing competition, so we recommend investors reduce holdings, while monitoring claims trends and premium rates.
Medibank Private Ltd (ASX: MPL)
The Medibank Private share price closed at $4.67 yesterday, up 0.21% for the day and up 23% in the year to date (YTD).
Blake Halligan from Catapult Wealth has a sell rating on the ASX financial share.
Halligan notes the stock's significant fall from $5.26 per share on 21 August.
He says:
The Federal Government is attempting to encourage private health insurers to increase payments to private hospitals.
Net profit after tax of $500.8 million in fiscal year 2025 was up a modest 1.7 per cent on the prior corresponding period.
Profit before tax of $728.8 million was up 2.4 per cent.
The risk of increasing cost pressures paints a challenging outlook.
1 ASX financial stock to buy
Tyro Payments Ltd (ASX: TYR)
The Tyro Payments share price closed at $1 on Thursday, up 0.5% for the day and up 21% in the YTD.
Hallihan has a buy rating on the ASX financial stock.
He explains:
The company reaffirmed fiscal 2026 guidance for normalised gross profit of between $230 million and $240 million and an EBITDA margin of between 28.5 per cent and 30 per cent.
Tyro is launching a new banking platform to boost merchant adoption. Tyro's modern technology and strong performance support growth.
Shares remain below our fair value estimate of $1.30, so we recommend accumulating the stock.
