Introduction
Westpac Banking Corporation, commonly known as Westpac, is the second-largest bank in Australia and one of the oldest banks in the world. Founded in 1817, it is the first bank established in Australia and has been a part of the banking landscape ever since. Westpac is a publicly listed company on the Australian Securities Exchange (ASX) and is one of the largest components of the S&P/ASX200 index. As such, the Westpac share price is an important indicator of the performance of the Australian financial sector.
Westpac Share Price History
The Westpac share price has been volatile over the years, with some periods of strong growth and others of equally strong declines. In the past ten years the Westpac share price has ranged from a low of $18.50 in March 2009 to a high of $37.30 in August 2017. Since then, the Westpac share price has been on a steady downward trend, falling to a low of $23.50 in December 2018. Since then, the Westpac share price has recovered somewhat, reaching a high of $31.90 in August 2019.
Factors Driving Westpac Share Price
The Westpac share price is driven by a number of factors, including the performance of the Australian economy, changes in interest rates, changes in the bank’s earnings, changes in regulations and changes in the bank’s strategy. Changes in interest rates can have a direct effect on the share price, as they affect the bank’s ability to attract deposits and lend funds to customers. Changes in the bank’s earnings can also have an effect on the share price, as investors will take into account the bank’s profitability when deciding whether to invest in the company.
Westpac Share Price Performance in 2020
The Westpac share price has been on a roller coaster ride in 2020, with the share price initially dropping to a low of $20.70 in March 2020, before bouncing back to $27.20 in June 2020. Since then, the share price has been on a steady downward trend, falling to a low of $21.60 in October 2020. The Westpac share price has since recovered somewhat, reaching a high of $24.20 in December 2020.
Westpac Share Price Outlook for 2021
The Westpac share price is expected to remain volatile in 2021, with analysts predicting the share price could range between $20 and $30, depending on how the Australian economy performs and how the bank adjusts its strategy in response to the pandemic. The bank is expected to continue to focus on cost-cutting measures and increasing its digital capabilities in order to remain competitive in the long-term.
Conclusion
The Westpac share price has been volatile over the years, with periods of strong growth and equally strong declines. The share price is driven by a number of factors, including the performance of the Australian economy, changes in interest rates, changes in the bank’s earnings, changes in regulations and changes in the bank’s strategy. The Westpac share price is expected to remain volatile in 2021, with analysts predicting the share price could range between $20 and $30.