市场见解

Why the Commonwealth Bank (ASX:CBA) share price is flying right now

Why has the Commonwealth Bank of Australia (ASX: CBA) share price surged back towards its all-time high in the last 6-12 months?
The post Why the Commonwealth Bank (ASX:CBA) share price is flying right now appeared first on The Motley Fool Australia. –

Flying ASX share price represented by bunch of yellow balloons flying high

The 银行及金融 - 澳洲联邦银行 (ASX: CBA) share price has been on fire in recent months. Shares in Australia’s largest bank are up 4.8% in 2021 and 25.9% in the last 6 months. So, what’s driving the ASX bank share back towards its all-time high?

Why the CBA share price has climbed

There have been a couple of big factors at play here. The first is that many ASX bank shares were smashed in the 2020 bear market. That means we saw a share price recovery as Australia responded strongly to the coronavirus pandemic and the economic recovery began in mid to late 2020.

More economic activity is generally good news for lenders. It means that their key borrowers are likely doing better, whether in retail, healthcare, energy and the like. More money flowing in the economy means more jobs, more cash flow for borrowers and less downside risk for a bank.

Another big reason for the CBA share price gains could be the Aussie property boom. It’s estimated that the Big 4 banks control something like 80 per cent of all loans in Australia. One of the biggest areas of finance in Australia is for real estate.

Aussie housing has been going bananas in recent months, particularly on the eastern seaboard. House prices in Sydney and Melbourne have been surging, highlighted by strong CoreLogic data in March.

A strong housing market is good for lenders. It means that their underlying security on the loan is increasing, and once again, can be a good indicator of overall economic health. That means more jobs and lower chances of defaults across the board.

Overall, an effective pandemic response has helped kickstart the economy and CBA share price into gear. That means the ASX bank share is not far away from approaching the $90 per share barrier and even its all-time closing high of $95.09 in March 2015.

Foolish takeaway

The CBA share price has been on fire in recent months. Shares in Australia’s largest bank are up 49.7% in the last 12 months compared to a 34.4% gain for the S&P/ASX 200 Index (ASX: XJO).

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 Ken Hall 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 Why the Commonwealth Bank (ASX:CBA) share price is flying right now appeared first on The Motley Fool Australia.

随时随地,交易世界!

移动APP平台,拥有 12 个市场的 50,000 多种全球上市证券(全球市值超过 70%),直接在您的 Android 或 iOS 设备上即可操作。

与独有的交易理念和投资分析工具相结合,帮助您在我们 12 个全球市场中的几乎所有金融工具上找到可操作的见解,从而帮助您优化交易策略。

推荐给您的朋友

向您的朋友推荐Monex并赠予他们免费使用我们交易工具的机会

我们尊重您的隐私,只会向您的朋友发送一封邮件 

与您的朋友分享

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!