Image source: Getty Images
The Macquarie Group Ltd (ASX: MQG) the share price fell in June, although it lost less than many other ASX bank shares during the month.
Macquarie shares fell 11.54% between the market close on May 31 and June 30. To put it in perspective, then S&P/ASX 200 Index (ASX: XJO) is down almost 9% over the same time period.
So what has affected Macquarie’s share price over the month?
Bank shares suffered
Macquarie shares had a tough June, but they outperformed several other ASX banks. last month, Commonwealth Bank of Australia Ltd (ASX: CBA) down 13.4% in that time Westpac Banking Corp (ASX: WBC) lost 18.3%. meanwhile, National Australia Bank Ltd (ASX: NAB) fell by 12.38% and Australia, New Zealand Banking Group Ltd (ASX: ANZ) decreased by 12.02%. Bendigo and Adelaide Bank Ltd (ASX: BEN) also fell 12.96% in June.
Rising interest rates and recession fears appeared to weigh on ASX bank shares, including Macquarie. Despite the rise in net interest margin (NIM) on home loans, they can also lower demand for new mortgages, as my silly colleague Bernd recently pointed out. In addition, they can increase the number of bad debts in the bank.
Looking at the news from Macquarie, the company announced its plans on June 28 raise $400 million through the offering of capital notes. These notes were issued for $100 each, payable quarterly in arrears subject to terms.
In other news last month, Macquarie offered interest rates of 1.5% per annum on transaction accounts from 17 June. As my colleague from Foolish Sebastian pointed out, it was a higher rate than most other ASX banks.
Looking ahead, some analysts are predicting an increase in Macquarie’s share price. Morgans analysts are optimistic about its impact infrastructure and renewable energy, as reported by my silly colleague James. Morgan added:
The company can also benefit from the recent market volatility through its trading business, while the company continues to gain market share in the Australian mortgage market.
Morgans raised its price rating on Macquarie shares to $215. That’s up 27% from the current share price of $168.65 at the time of writing.
Meanwhile, Ord Minnett Senior Investment Advisor Tony Paterno is also recommended investors buy Macquarie shares in a June 19 message. He noted the company’s plans to increase interest payments on transaction accounts, adding:
After destabilizing the housing loan market in recent years, this could affect the deposit market if it gains strength.
Stock price snapshot
Macquarie shares are down 18% year-to-date, but have jumped more than 7% over the past year.
In contrast, S&P/ASX 200 Index returned about 9% last year.
Macquarie has a market capitalization just over $65 billion based on the current stock price.