Commonwealth Bank (ASX:CBA) share price and weekly news wrap

As the end of the shortened trading week draws to a close, we look at what moved the Commonwealth Bank share price.
The post Commonwealth Bank (ASX:CBA) share price and weekly news wrap appeared first on The Motley Fool Australia. –

Commonwealth Bank place Sydney NSW

The Commonwealth Bank of Australia (ASX: CBA) share price is slipping late afternoon trading, down 0.5%. The fall comes despite a the S&P/ASX 200 Index (ASX: XJO) edging higher, up 0.3% at time of writing.

With the ASX closed tomorrow (and Monday) for the long Easter weekend, we take a look at how and why Commonwealth Bank shares moved this week.

How the Commonwealth share price moved this week

Yesterday, 31 March, was the only day this week that Commonwealth Bank shares gained, closing the day up 0.8%. With a loss of 0.5% on Monday and closing down 0.2% on Tuesday, it looks like CBA will close the shortened trading week down some 0.3%.

Still, Commonwealth Bank shares remain up 35% since 1 October, handily outpacing the 17% gain posted by the ASX 200 over that same time.

Another round of legal woes for CBA

Last week on Monday, March 29, Commonwealth Bank, along with Australia and New Zealand Banking Grp Ltd (ASX: ANZ), settled a lawsuit in the United States that was initiated way back in 2016. CBA shares gained 0.4% following the news.

No sooner was that settled than the Finance Sector Union accused CBA of owing thousands of workers a total of $45 million. The workers have allegedly been unable to take their contractually allowed 10-minute paid tea breaks. CBA has denied the allegations.

This week a new and potentially more damaging legal headache emerged.

The Australian Securities and Investment Commission (ASIC) has commenced legal action against CBA, accusing the big 4 bank of misleading or deceptive conduct as well as alleging CBA violated its Australian financial services licence requirements.

With Commonwealth Bank shares down more than twice as much as the other 3 banks in the big 4 mix today, investors may be taking note.

Why this asset manager prefers Commonwealth Bank shares

With all of the big 4 banks posting hefty share price gains as part of the recovery trade over the past half year, ASX investors are beginning to wonder how much higher, if any, they can go.

Looking ahead, Jason Teh, chief investment officer at Vertium Asset Management, says (quoted by the Australian Financial Review), “The banks may trade sideways. Now it’s all about the relative attractiveness.”

Teh isn’t selling his bank holdings though. And he prefers Commonwealth Bank and Westpac Banking Corp (ASX: WBC) to National Australia Bank Ltd (ASX: NAB) and ANZ.

That’s because he believes CBA’s earnings have “more to go from a mean reversion point”.

Teh added, “Given how fast the bad debt profile is rolling off, there’s probably one more result before everything normalises for the banks. I think that’s as good as it’s going to get.”

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Commonwealth Bank (ASX:CBA) share price and weekly news wrap appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!