StanChart shares plummet on read-across after ANZ warning

StanChart shares fell steeply in afternoon trading on Thursday, with market commentary referencing bearish guidance overnight from its rival Down Under for its commodities-related provisions, Australia&New Zealand Banking Corp. and a drop in oil prices.

Australia And New Zealand Banking Group Limited

$32.45

06:30 15/11/24

2.59%

$0.82

Banks

4,677.17

15:45 15/11/24

1.24%

57.25

FTSE 100

8,060.61

15:45 15/11/24

n/a

FTSE 350

4,453.56

15:45 15/11/24

n/a

FTSE All-Share

4,411.85

15:45 15/11/24

n/a

Standard Chartered

944.80p

15:45 15/11/24

0.66%

6.20p

"While the overall credit environment remains broadly stable, we are continuing to see pockets of weakness associated with low commodity prices in the resources sector and in related industries," ANZ acting chief financial officer Graham Hodges said in a statement to the ASX.

"This is a challenging part of the cycle for these customers with implications for the banking sector as individual circumstances evolve," he added.

For the three months ended in December 2015 the Asia-focused lender had announced on 16 February it would book a credit charge of a little above $800m, ahead of the $735m which analysts had been predicting at the time.

Overnight on Thursday, the lender warned its provisions for bad debts would be at least $75m higher than its previous forecast.

In parallel, as of 15:22GMT front month Brent crude futures were 1.556% lower to $39.84 per barrel on the ICE.

StanChart’s exposure to the commodities industry stood at 6% of its total assets.

Shares of ANZ closed down by 5.21% at AUD24.02 in Sidney trading.