Why did the ANZ share price tumble in November while the ASX 200 gained 6%?

November was a shocking month for the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price, despite the broader market’s recovery.

The smallest of the big four banks’ stock tumbled 2.46% last month.

After closing October at $25.56, ANZ shares plunged to finish November at $24.74.

For comparison, the S&P/ASX 200 Index (ASX: XJO) rose 6.13% over the 30 days to 30 November.

So, what weighed so heavily on the ANZ share price last month? Let’s take a look.

What went wrong for the ANZ share price in November?

Interestingly, there was no obvious news that might have dragged on the ANZ share price last month.

Though, its worst day on the market ­– 7 November – saw the stock dump around 4.6%. That was the day ANZ traded ex-dividend, meaning new investors wouldn’t receive its upcoming 74 cent final dividend.

It was also, interestingly, the same day Westpac Banking Corp (ASX: WBC) dropped its full-year earnings.

ANZ also made headlines last month on news it would contribute $42 million to settle a class action related to the sale of three consumer credit products. The bank was one of numerous parties caught up in the legal action. The settlement amount was covered by already-held provisions.

The final major news from the ASX 200 bank dropped last week when it announced it will cease its business in Myanmar, citing “increasing operation complexity”. The nation has been under military rule since early 2021.

Another factor to consider when dissecting the ANZ share price’s November struggles is its brilliant October performance. It outperformed the ASX 200, gaining 10% compared to the index’s 5% rise, that month.

Additionally, the S&P/ASX 200 Financials Index (ASX: XFJ) also underperformed in November, gaining just 1.1%.

Taking another step back, the ANZ share price has been underperforming for most of 2022. It has dumped 10% year to date and is currently 6% lower than it was this time last year.

Comparatively, the ASX 200 is down 3% year to date and has lifted 1% over the last 12 months.

The post Why did the ANZ share price tumble in November while the ASX 200 gained 6%? appeared first on The Motley Fool Australia.

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More reading

• The 3 best-performing ASX 200 bank shares in November revealed
• The 10 ASX 200 shares responsible for 60% of all Aussie dividends last quarter
• Bought $1,000 of ANZ shares 10 years ago? Here’s how much dividend income you’ve received
• Which ASX 200 bank share stands to benefit the most from ‘good borrowers’?
• If I’d invested $10,000 in ANZ shares a year ago, here’s how much I’d have now

Motley Fool contributor Brooke Cooper 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. 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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