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:

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?

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward

Image source: Getty Images

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

asx share price resignation represented by man kicking miniature man through the air
Financial Shares

Australian Ethical just dumped 1.6 million shares of this ASX 200 company. Here's why

Australian Ethical has made a major ESG call on this large business.

Read more »

two dogs, a golden one and a black one, together carry a stick in their mouths as the run side by side with contented, happy looks on their faces.
Broker Notes

2 ASX 200 shares to rocket from same booming industry: expert

Most sectors will struggle when the economy slows down, but maybe not this one.

Read more »

Woman looking at her smartphone and analysing share price.
Financial Shares

AMP shares drop then pop amid ex-dividend and delay of $225 million sale

The sale of Collimate Capital's domestic leg looks to be split in two amid regulatory delays.

Read more »

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

Why is the AMP share price sinking today?

In announcing its full year financial results, the AMP board declared a dividend payout for the first time since 2020.

Read more »

A woman shows her phone screen and points up.
Financial Shares

Hub24 share price up 9% on record half-year results and turbocharged dividend

The financial services provider is flying high today on the back of stellar results.

Read more »

Woman relaxing and using her Apple device
Financial Shares

For $1,000 in monthly passive income, buy 1,770 shares of this ASX 200 stock

This ASX blue chip could unlock enormous passive income for investors.

Read more »

Woman on her laptop thinking to herself.
Financial Shares

Are AMP shares finally cheap enough to buy following Thursday's 13% crash?

A return to dividend hasn't convinced this top broker.

Read more »

Man pointing at a blue rising share price graph.
Earnings Results

QBE share price leaps 10% amid explosive dividend growth

QBE boosted its final dividend payout by a whopping 58% from the prior year.

Read more »