From Jan 2020 until about October 2020 the ASB share price (candle chart below) has broadly correlated with the Aussie market (blue chart below S&P300). One thing that has happened since October is that the big banks, which dominate the market index have rallied around 30%, so there could have been selling out of stocks like ASB to buy the banks. In addition, since October the USD has weakened by around 8%. I am not sure how much ASB hedges against currency, but hedging isn't 100% effective. I also own IPH ( patent law firm) which has a very similar chart to ASB, including the drop around October, but the drop was not as severe. A post on an IPH hotcopper forum indicated that even with hedging every 1c drop in the USD results in a 1.9M difference in revenue ($386M revenue in FY20, profit margin 17.7%). ASB had revenue of ~$2086M in FY 20, so each 1c drop in the USD might lead to ~ $10M drop in revenue, assuming all things being equal. ASB only had profit margin of 4.3% in FY20, so resulting earnings and hence share price are likely to be more sensitive to changes in revenue.
Of course there are probably other factors at play, all IMO.
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$2.24 |
Change
0.070(3.23%) |
Mkt cap ! $811.9M |
Open | High | Low | Value | Volume |
$2.20 | $2.25 | $2.19 | $1.198M | 539.6K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 227 | $2.22 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$2.24 | 18661 | 4 |
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No. | Vol. | Price($) |
---|---|---|
1 | 227 | 2.220 |
2 | 8952 | 2.200 |
3 | 7946 | 2.190 |
1 | 10000 | 2.180 |
1 | 11520 | 2.170 |
Price($) | Vol. | No. |
---|---|---|
2.240 | 18661 | 4 |
2.250 | 4476 | 1 |
2.260 | 2000 | 1 |
2.280 | 5070 | 1 |
2.300 | 6122 | 1 |
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