Business & Finance
Bank Rally Hits Short Sellers Betting on Australia Lending Slump
Key Points
Bank Rally Hits Short Sellers Betting on Australia Lending Slump The upward march in share prices of Australia’s biggest banks is reversing the tumble sparked two months ago by property tax changes, and inflicting pain on short sellers who were anticipating a prolonged plunge. Commonwealth Bank of Australia’s stock price closed on Thursday at the highest level since May 11, the day prior to the federal budget that tightened rules on deducting losses on property investments.
Bank Rally Hits Short Sellers Betting on Australia Lending Slump
The upward march in share prices of Australia’s biggest banks is reversing the tumble sparked two months ago by property tax changes, and inflicting pain on short sellers who were anticipating a prolonged plunge.
Commonwealth Bank of Australia’s stock price closed on Thursday at the highest level since May 11, the day prior to the federal budget that tightened rules on deducting losses on property investments. The tax changes had sparked fears of a real estate slump that could pressure home lending growth for banks and led to a record single-day 10% drop for CBA.