Stocks of interest at the close of trade on the ASX on Tuesday, February 5.
WBC – WESTPAC – up $1.83, or 7.36 per cent, to $26.70.
ANZ – ANZ BANKING GROUP LTD – up $1.64, or 6.5 per cent, to $26.86.
NAB – NATIONAL AUSTRALIA BANK – up 94 cents, or 3.91 per cent, to $24.97.
CBA – COMMONWEALTH BANK – up $3.30, or 4.69 per cent, to $73.60.
All four big banks surged after the financial services royal commission lambasted their culture but failed to recommend breaking them up or similar harsh penalties.
AMP – AMP LIMITED – up 22 cents, or 9.95 per cent, to $2.43.
Australia’s largest wealth manager faces possible criminal prosecution for misleading ASIC over fees for no service, and has lost more than half its market value since its misconduct was made public by the industry, but apparently investors were relieved the sanctions were not more harsh.
MOC – MORTGAGE CHOICE – down 26.5 cents, or 25.24 per cent, to 78.5 cents.
AFG – AUSTRALIAN FINANCE GROUP LTD – down 37 cents, or 29.13 per cent, to 90 cents.
In response to the royal commission, the government has proposed to ban trailing commissions on new loans by July 1, 2020, and a further review of broker renumeration. Mortgage Choice and AFG said they were committed to working with policy makers, but both companies’ shares took a beating.