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[sharechat] banking sector

From:	"vincent.wang" <vincent.wang@xtra.co.nz>
Date:	Fri, 7 Apr 2000 19:18:34 +1200

Geoff ,

The banking stocks are interest sensitive stocks. I guess the fall of Westpact is more or less to do with this. If you compare the interest rate movement in the past few years with the banking shares' price movement(I am referring to Aussie banks), you'll will find there is a high correlation between the two(negative correlation). That is when the interest rate goes up, the bank share price comes down.

I personally prefer to hold insurance stocks rather than banking stocks because insurance companies normally have stronger balance sheet.

Regards,

Vincent Wang

discloure:holder of AXA, no bank stock

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