What’s impacting the Westpac share price on Friday?

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The Aussie share market is yet again heading south after Wall Street recorded another heavy fall overnight.

In early afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is down by 0.89% to 6,957.5 points.

However, ASX bank shares — including the Westpac Banking Corp (ASX: WBC) share price — are defying the sell-off to outperform the broader index.

The Westpac share price spent much of the morning in the green — at one stage rising as high as $21.65, a 2.2% gain. However, at the time of writing it has edged into the red by 0.05% to trade at $21.16.

What’s helping Westpac shares outperform on Friday?

While most of the ASX market is in a sea of red, the S&P/ASX 200 Banks Index (ASX: XBK) is among the best performing sectors today.

Currently 0.28% higher at 2,475.2, the benchmark index for Australian banks is rebounding from this week’s sizeable losses.

Since Monday, the ASX 200 banking sector has dropped almost 10%. This followed the decision by the Reserve Bank of Australia (RBA) to increase the official cash rate by 0.5%.

Today, Westpac’s big four peers are all currently in the green. National Australia Bank Ltd (ASX: NAB), Australia and New Zealand Banking Group Ltd (ASX: ANZ), and Commonwealth Bank of Australia (ASX: CBA) were all up by more than 1% earlier in the day but have since partially retreated.

Westpac ponders capital notes offer

On a separate note, Westpac advised today that it’s weighing up a new capital notes offer in the near future.

According to its release, the offer could include a reinvestment offer for certain Westpac capital notes 2 holders.

Although, whether or not it goes ahead will depend on market conditions, and regulatory and other required approvals.

It’s worth noting that some investors who previously participated in the capital notes 2 may not be eligible. This is due to Westpac changing how the offer is conducted following the recent introduction of product design and distribution obligations (DDO).

As such, management advised below of what’s expected under any offer that is made:

  • All applications, including under a reinvestment offer, will need to be made through a syndicate broker;
  • Participating applicants would need to satisfy new eligibility requirements;
  • No specific offer will be made to Westpac securityholders; and
  • There won’t be any direct applications to Westpac.

Westpac share price snapshot

Over the past 12 months, the Westpac share price has declined by 20% after a tough beginning in 2022.

After significant volatility across the ASX, the bank’s shares are flat year-to-date.

Based on today’s price, Westpac commands a market capitalisation of roughly $76.95 billion.

The post What’s impacting the Westpac share price on Friday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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