Australia: It’s not just the big miners, BHP and Rio Tinto, on the back of the Australian governments’ proposed Resource Super Profits Tax, that have been hit hard in recent weeks. Major banking stocks have been hit hard too – mainly due to external factors.
The downturn across the ASX has only occurred, post-RSPT announcement however, and the European problems didn’t emerge domestically until after the announcement either.
Economic instability helped along by uncertain and not-yet-finalised taxation policy can’t be helping things.
Below, the chart displays, the stock prices of Rio Tinto, BHP, Commonwealth Bank and Westpac as compared with the ASX over the past 60 days. Australia’s two biggest banks, by market cap, we selected along side Australia’s two largest miners.
– The CBA has actually lost less than all the other companies, and less than the ASX benchmark.
– Westpac is having a horror of a time at the moment, perhaps due to their currency exposure.
– The miners have also been hit particularly hard – and perhaps arguably wouldn’t have been hit so hard if European selling hadn’t compounded selling already occurring after the Rudd governments’ announcement of the RSPT.