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.
Editor, The Daily Reckoning