CommBank (ASX:CBA) share price hits new 52-week high

The Commonwealth Bank of Australia (ASX:CBA) share price has climbed to a new 52-week high as we approach the end of the month.

| More on:
ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Commonwealth Bank of Australia (ASX: CBA) share price edged 0.3% higher on Friday to close at a new 52-week high. Shares in Australia's largest bank finished the day at $89.39 per share with a $158.6 billion market capitalisation.

This caps off another strong month of trade for the ASX bank share. The CBA share price has climbed 3.8% higher in April as we approach the end of the month. So, what's pushing the Aussie bank's valuation higher in 2021?

Why the CBA share price is hitting new heights

2020 was a remarkable period for ASX bank shares and CBA was no exception. Shares in the Aussie bank were smashed in the March bear market as the coronavirus pandemic took hold. 

However, we've seen a consistent recovery in bank valuations since late last year. The CBA share price is now up 29.5% since the start of November while the S&P/ASX 200 Index (ASX: XJO) has climbed 19.1%.

Favourable conditions including a strong housing market have helped maintain consistent borrowing demand. The banks have been able to write significant business in recent months as the Aussie housing market has heated up, particularly in major cities.

Government stimulus measures and central bank interventions to drive down lending rates have also been good for the banks. That has allowed them to access cheaper funding and maintain liquidity in Aussie credit.

Another factor has been the continual economic recovery since mid-last year. Stronger jobs and retail numbers have helped increase confidence in an economic bounce back from COVID-19.

As a result, earnings have been strong and the CBA share price has climbed to a new 52-week high. That's despite a couple of recent hiccups including a deceptive conduct fine and a big four bank class action.

Foolish takeaway

The big four bank shares have been strong performers to start the year. The CBA share price has jumped to a new 52-week high as at Friday's close and it will be interesting to see how it performs in May.

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.

More on Financial Shares

A man with long hair and tattoos holds out an EFTPOS payment machine from behind a shop counter.
Financial Shares

1 dirt-cheap ASX stock I'd buy as Aussie cash carrier looks for a lifeline

Every crisis comes with an opportunity. I reckon this payments company is in the buy zone as cash crumbles.

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Financial Shares

Why is this ASX 300 stock crashing 23% today?

Shareholders of this stock have been hit with some bad news.

Read more »

Happy man working on his laptop.
Financial Shares

3 things about AFIC stock every smart investor knows

These are underrated factors about the LIC.

Read more »

Frazzled couple sitting out their kitchen table trying to figure out their finances or taxes.
Dividend Investing

Here's the AMP dividend forecast through to 2026

There is some good news for AMP shareholders.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Earnings Results

Soul Patts share price struggles on falling profits

ASX 200 investment house Soul Patts reported its half year results this morning.

Read more »

Financial Shares

Buy this ASX All Ords stock for a 15% gain and 9% dividend yield

Goldman Sachs is tipping big returns from this stock.

Read more »

Man pointing at a blue rising share price graph.
Financial Shares

Big ASX news: Macquarie share price hits new 52-week high

It's been a great day to own Macquarie shares...

Read more »

a woman wearing a dark business suit holds her hand up in a stop gesture while sitting at a desk. She has a sombre look on her face.
Financial Shares

Guess which ASX All Ords stock is suspended amid takeover rumours

Another ASX share is rumoured to have received a takeover offer.

Read more »