The Commonwealth Bank of Australia (ASX: CBA) share price is rapidly rising. It's currently up around 5% right now. It's now up around 9% from the start of the week.
It's not just the CBA share price which is rising rapidly. Today alone the Westpac Banking Corp (ASX: WBC) share price is up 9%, the Australia and New Zealand Banking Group (ASX: ANZ) share price is up 9% and the National Australia Bank Ltd (ASX: NAB) share price is up 8.8%.
This is one of the best days ever for the major ASX banks if they hold onto these gains.
The error with the jobkeeper total cost is good news in the sense that far less people are requiring support than previously expected. So perhaps that means the economy won't be hit as hard as previously expected?
With a share price fall from around $90, investors were obviously expecting a really painful downturn for CBA. But clearly the news is getting better with restrictions lifting and people getting out and about again.
Is it time to buy the CBA share price?
So far CBA has provisioned $1.5 billion for COVID-19 impacts. Not much in the grand scheme of CBA's overall loan book. If that's all the damage is going to be then the CBA share price could seem pretty cheap.
But I don't think it's all rosy just yet. In Australia there are question marks for at least the tourism and construction sectors.
The US and China could each individually cause major problems for the entire world if there's a new trade war. The coronavirus continues to spread at an alarming rate in the US. And who knows what the US election will throw up?
If you've been waiting to buy CBA shares then I think now could be the time to do it – everything is looking like it's on an upward trend. But I'm not sure the dividend will remain as high. Profits could fall if the net interest margin (NIM) declines.
