Why The Commonwealth Bank Share Price Rose Today

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What Happened to Commonwealth Bank’s Share Price?

Shares in Commonwealth Bank [ASX:CBA] rose by over 1% today. The move up put the stock into new all-time highs. The stock is also moving up alongside the bullish trend of the general market at the moment.

Why Did This Happen to CBA Shares?

The stock market is pricing in strong earnings for the company. The company also has a reasonable 4.7% fully franked dividend yield.

What Now for Commonwealth Bank?

Commonwealth Bank is Australia’s largest bank and also the largest mortgage lender. The rise in the share price suggests there is strong credit growth in the Australian economy, and a healthy property market. Mortgage arrears appear to be low too.

Callum Newman
Editor, The Daily Reckoning

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Callum Newman

Callum Newman

Callum Newman is the editor of The Daily Reckoning and Associate Editor of Cycles, Trends and Forecasts. He also hosts The Daily Reckoning Podcast. Originally graduating with a degree in Communications, Callum decided financial markets were far more fascinating than anything Marshall McLuhan (the ‘medium is the message’) ever came up with. Today Callum spends his day reading and researching why currencies, commodities and stocks move like they do. So far he’s discovered it’s often in a way you least expect. To have Callum’s thoughts and insights on the current state of the currency, commodities and stock markets delivered straight to your inbox, take out a free subscription to The Daily Reckoning here.
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