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Why are ASX 200 bank shares underperforming on Thursday?

Here's what's weighing on ASX 200 bank stocks today.

Posted by
Brooke Cooper
Brooke has been a Motley Fool contributor since early 2021. She holds a Bachelor of Communication with specialisations in journalism and international studies from Charles Sturt University. Brooke aims to inform and excite Aussies keen to grow their wealth by investing in ASX companies. When not writing or researching, you'll likely find Brooke gallivanting around South East Queensland.
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Key points
  • ASX 200 banks are in the red today. The big four banks are each recording slumps of between 0.03% and 0.9% 
  • It comes as the financial sector proves to be one of the broader market's worst performers on Thursday 
  • The Zip Co share price is the index's major weight, currently down 6% 

It's a rough day on the market for S&P/ASX 200 Index (ASX: XJO) bank shares.

In fact, it's proving to be a tough one for nearly all stocks on the S&P/ASX 200 Financials Index (ASX: XFJ). The sector has slumped 0.65% at the time of writing, with only a few financial bigwigs posting gains.

Let's take a closer look at what's going on with the index and how the ASX 200 big four banks are tracking on Thursday.

A woman dressed in red and standing in front of a red background peers thoughtfully at a piggy bank in her hand.

Image source: Getty Images

What's weighing on ASX 200 bank shares today?

The ASX 200 has been wobbling on Thursday. After spending much of this morning in the red, the broader market has regained its feet to record a 0.11% gain.

Still, the market is being weighed down by its financial constituents' struggles. The sector is one of its worst performers today.

Though, the financial sector is doing better than the S&P/ASX 200 Information Technology Index (ASX: XIJ). It's fallen 1.7% at the time of writing.

Unfortunately, ASX 200 bank giants haven't managed to avoid today's downturn.

The Australia New Zealand Banking Group Ltd (ASX: ANZ) share price has slumped 0.93%.

Meanwhile, shares in the Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) have slipped 0.74% and 0.21% respectively.

The National Australia Bank Ltd. (ASX: NAB) share price is outperforming its big four peers to record a 0.03% slide.

NAB's slightly better performance might be due to news it's completed its $2.5 billion buyback. Excitingly, the bank has announced it's now embarking on another buyback that could prove to be the same size.

Another banking giant, Macquarie Group Ltd (ASX: MQG), is also suffering today, posting a 1.37% slip.

Buy now, pay later provider Zip Co Ltd (ASX: Z1P) is the sector's biggest weight, falling 6.38%.

Finally, right now, there are only 2 ASX 200 financial stocks in the green today. Those are embattled Magellan Financial Group Ltd (ASX: MFG) – posting a 0.41% gain – and AMP Ltd (ASX: AMP) – up 1.06%.

As market watchers might be aware, Magellan announced the departure of its co-founder and former chair, Hamish Douglass, this week.

While there's been no news from AMP, the battered company's stock is 80.9% lower than it was 5 years ago.

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