CBA shares reach new all time high after 4% surge

CBA shares have done it again.

Well, who would have thought it… Commonwealth Bank of Australia (ASX: CBA) shares have overcome all of the jitters, trade war fears and overvaluation concerns to once again push to a new all-time high this Wednesday. 

Yep, CBA shares closed at a flat $168 each yesterday afternoon. But this morning, those same shares opened at $168.42 before pushing as high as $168.70 soon after market open. That was a 4% surge at the time.

That $168.70 price is a new 52-week high for this ASX 200 bank stock, as well as a new all-time record high.

CBA shares have since cooled off and have tipped into red territory. At the time of writing, the bank is sitting on a 0.3% loss for the day thus far, at 4167.50 a share. That's despite the broader S&P/ASX 200 Index (ASX: XJO) rising by an enthusiastic 1.7% so far today.

Today's latest all-time high for CBA marks a significant recovery for the ASX's largest bank. It was only back on 7 April that Commonwealth Bank stock got as low as $140.21 a share amid the market meltdown over US President Donald Trump's tariffs.

Since that day, just over two weeks ago, the bank has now added more than 20% to its value. Investors are sitting on an 8.5% gain for 2025 to date as well, not to mention a 45.44% rise over the past 12 months. 

Check this all out for yourself below:

Man raising both his arms in the air with a piggy bank on his lap, symbolising a record high.

Image source: Getty Images

Why are CBA shares at an all-time high this Wednesday?

So we've discussed the 'how' of CBA shares' new all-time high. But what about the 'why'?

Well, that question is a little harder to answer.

There has been no fresh news or announcements from CBA for a while now, certainly nothing that might logically warrant a new record high share price.

Perhaps, with gold stocks out of favour today, investors are looking for a 'safe haven'. CBA shares certainly seem to be assuming this role at times these days, given most commentators seem united in the view that the bank is sorely overvalued.

CBA's dividend yield unequivocally suggests that it is sitting at a very unbank-like 2.8% at present. As does its price-to-earnings (P/E) ratio, which is currently trading at a lofty 29.5. Again, very unbank-like.

Compare that to ANZ Group Holdings Ltd (ASX: ANZ). ANZ shares are currently trading at a dividend yield of 5.86% and a P/E ratio of 13.16.

But in an uncertain world, investors crave stability. And, rightly or wrongly, that seems to be what investors have concluded CBA offers. Let's see what happens next.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 Scott Phillips.

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