Shares in BEN dropped close to 5% yesterday after CEO Mike Hirst told investors at the AGM that APRA’s lending limits had dampened growth momentum and made it harder to compete.
He also said that APRA’s caps on interest-only lending had forced the bank to “slam on the brakes” on these types of loans. Further, he expects total balance sheet growth to be relatively flat during 2018.
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Our ALGO engine triggered a sell signal on BEN on August 16th at $12.50. This level has never been challenged during the recent correction higher and we now look at the June 23rd low of $10.50 as the next key support level.
It’s worth noting that yesterday’s sharp drop in the share price was on very heavy volume of 4.2 million shares. The average daily volume over the last three months in BEN has been in the 1.4 million share range.
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