Record CBA share price and blockbuster merger push ASX 200 financials sector to the top

ASX financial stocks led the 11 market sectors last week with a 1.95% gain.

Financial shares led the ASX 200 market sectors last week, with a 1.95% gain over the five trading days.

The S&P/ASX 200 Index (ASX: XJO) closed the week 0.96% higher at 8,515.7 points.

Eight of the 11 market sectors finished the week in the green.

Let's recap.

A female financial services professional with a manicured black afro hairstyle turns an ipad screen to show a client across the table a set of ASX shares figures in graph format.

Image source: Getty Images

CBA shares and Soul Patts merger boost ASX 200 financials

Last week began with news that diversified investment house Washington H. Soul Pattinson and Co Ltd (ASX: SOL) would partner with building products manufacturer and property investment company Brickworks Ltd (ASX: BKW) in a $14 billion merger.

The merger made sense to shareholders given the two companies have held substantial stakes in each other for many decades.

Under the agreement, Brickworks shareholders will receive 0.82 shares in the new entity, called TopCo for now, for every share they hold.

Soul Patts shareholders will receive one new share for every share they already hold.

Once the merger is complete, Soul Patts shareholders will own about 72% of TopCo and Brickworks shareholders will own about 19%.

The news certainly boosted the ASX 200 financials sector last week.

Soul Patts shares screamed 16.4% higher after the announcement on Monday and hit a new record of $43.04 on Wednesday.

The Soul Patts share price finished the week up 8.53% at $40.08.

The Brickworks share price also ripped on Monday, up 27.6%, and also reached a new record of $35.20 on Wednesday.

Brickworks shares finished the week at $32.42, up 17.85%.

Also propelling the ASX 200 financials sector last week were the major ASX 200 bank shares.

The Commonwealth Bank of Australia (ASX: CBA) share price reached another milestone, touching $182 per share on Thursday.

Overall, CBA shares lifted 2.24% over the week to close at $179.90 on Friday.

Macquarie Group Ltd (ASX: MQG) shares lifted 0.81% to finish the week at $215.94.

Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares closed 1.58% higher at $29.50.

Westpac Banking Corp (ASX: WBC) shares rose 1.9% to finish at $33.18.

National Australia Bank Ltd (ASX: NAB) shares closed the week at $38.58, up 1.53%.

What about other financial stocks?

The big ASX 200 insurance shares also finished the week in the green.

The Insurance Australia Group Ltd (ASX: IAG) share price crept 1.39% higher to $8.76.

The Suncorp Group Ltd (ASX: SUN) share price rose 2.62% to $21.17.

Medibank Private Ltd (ASX: MPL) shares lifted 1.68% to $4.85. The Medibank share price hit a record $4.96 on Tuesday.

QBE Insurance Group Ltd (ASX: QBE) shares rose 2.33% to $23.70. The QBE share price hit a 15-year high of $24.20 on Thursday.

The share price of buy now, pay later stock Zip Co Ltd (ASX: ZIP) rose 10.05% to $2.19 despite no price-sensitive news last week.

Block CDI (ASX: XYZ) shares lifted 1.78% to $98.23.

Shares in financial services company AMP Ltd (ASX: AMP) lost 0.8% to close at $1.24 on Friday.

HMC Capital Ltd (ASX: HMC) shares fell 4.55% to $4.82. The stock is down by more than 50% in the year to date.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sectorChange last week
Financials (ASX: XFJ)1.95%
Energy (ASX: XEJ)1.77%
A-REIT (ASX: XPJ)1.42%
Industrials (ASX: XNJ)1.25%
Information Technology (ASX: XIJ)0.98%
Materials (ASX: XMJ) 0.63%
Communication (ASX: XTJ)0.56%
Consumer Discretionary (ASX: XDJ)0.09%
Consumer Staples (ASX: XSJ)(0.04%)
Utilities (ASX: XUJ)(0.52%)
Healthcare (ASX: XHJ)(1.35%)

Motley Fool contributor Bronwyn Allen has positions in Zip Co. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Brickworks, HMC Capital, Macquarie Group, Washington H. Soul Pattinson and Company Limited, and Zip Co. The Motley Fool Australia has positions in and has recommended Brickworks, Macquarie Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended HMC Capital. 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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