Shares of ANZ have dropped over 2% to $26.55 in early trade as the ACCC said it expects to lay charges on the bank over the handling of a $2.5 Billion share placement in August of 2015.
While the basis of the charges are not clear, we understand that ANZ Treasurer, Rick Moscati, and other individuals will be charged over the 80 million share placement.
Our ALGO engine triggered a sell signal on ANZ on May 11th at $28.10. We see the next significant support level near $25.80.
We have been consistently cautious of the local banking sector all year, and still see scope for lower prices as loan growth continues slow to and profit margins continue to compress.