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The Bank of Queensland Limited (ASX: BOQ) the share price has struggled in recent days.
After closing yesterday’s trading session at $ 9.30, the bank’s shares have fallen more than 4% from their highs last Wednesday.
Let’s take a look at what’s weighing on the Bank of Queensland’s share price.
Weaker market drives Bank of Queensland share price
The Bank of Queensland has not released any price sensitive news that could explain the drop in its share price.
As a result, the weakness of the bank’s stocks can be attributed to several factors.
First, the general weakness in the market over the past few days could explain why the Bank of Queensland’s share price has struggled.
Concerns about the U.S. economy have triggered a large market sell-off, with many investors looking to take profits after a strong gain in 2021.
In addition, Bank of Queensland shares could fall victim to weaker sentiment in the banking sector.
This follows several notable bank downgrades such as Macquarie Group Ltd. (ASX: MQG) and National Australia Bank Ltd. (ASX: NAB).
Find out more about the Bank of Queensland share price
Despite struggling over the past few days, Bank of Queensland shares have had an exceptional year so far.
Since the start of 2021, the bank’s share price has gained more than 24%.
By comparison, the widest S & P / ASX200 Index (ASX: XJO) only managed to harvest 12% for the year.
Various catalysts have helped propel the Bank of Queensland’s share price higher this year.
The Bank of Queensland got off to a good start to the first half of fiscal 21.
For the first half of the year, the bank recorded a 9% increase in cash income to $ 165 million and a 66% increase in statutory net profit after tax to $ 154 million.
The bank also increased its interim dividend from 54% to 17 cents per share, fully franked.
In addition, the bank’s shares received a boost following the announcement of its interest in acquiring Money Equity (ME) Bank.
Following a capital increase, the Bank of Queensland received approval for the acquisition in early July.
The bank’s shares have also been the subject of positive reports from brokers.
More recently, analysts at JPMorgan ranked the Queensland-based bank as the third best financial share in the market.