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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Last
$2.55 |
Change
0.060(2.41%) |
Mkt cap ! $924.3M |
Open | High | Low | Value | Volume |
$2.51 | $2.55 | $2.46 | $1.327M | 528.4K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 522 | $2.53 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$2.55 | 26788 | 9 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 522 | 2.530 |
1 | 2330 | 2.520 |
1 | 2330 | 2.510 |
1 | 50000 | 2.500 |
3 | 3300 | 2.450 |
Price($) | Vol. | No. |
---|---|---|
2.550 | 26788 | 9 |
2.560 | 2330 | 1 |
2.570 | 14000 | 2 |
2.580 | 26953 | 4 |
2.600 | 71687 | 11 |
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