WBC price target $41, page-76

Four major banks are a significant portion of ASX 200. Financial sector has not been doing well over the past few years and as a result of this, ASX200 has not been able to cross the 7,000 mark. Bank share prices need to move up in tandem like today for a few more sessions and ASX200 will break past the 7,000 mark easily.

Good to see WBC doing well today and leading the financial sector. WBC has been oversold and it is overdue for a decent price recovery. Financial institutions invested two billion dollars and paid $25.32 per share in the recent capital raising and small shareholders invested another $770m and got their SPP shares at $24.20 and in my opinion WBC share price will not stay much longer below $25.32 as other financial institutions will be looking at topping up their WBC shareholding. Billions of dollars in dividends from WBC, ANZ and NAB will be paid out very soon and traditionally this money is deployed back into bank shares during December / January and bank share prices move up as a result.