Sydney, June 24, 2026, 02:07 AEST
Commonwealth Bank of Australia finished Tuesday at A$164.21, up 80 cents, or 0.49%. The stock edged higher while risk sentiment in the market faded. The country’s largest lender still managed a small gain.
S&P/ASX 200 slipped 29 points, down 0.33% at 8,787. Tech stocks tumbled about 4%, weighing on the index. Big banks—CBA, Westpac, National Australia Bank and ANZ—rose, giving lenders rare gains on a weak day.
Australia faces its next test soon, with May CPI numbers set for release at 11:30 a.m. AEST on Wednesday. April’s annual inflation slowed to 4.2%, but trimmed-mean inflation, which strips out some of the more volatile items, inched up to 3.4%.
RBA keeps cash rate at 4.35% after holding steady last week, ending a run of three hikes in 2026. CBA economists see no rate cuts before May 2027. Higher rates help bank net interest margins, widening the gap between what banks earn lending and what they pay for funds, but they also squeeze borrowers and load more pressure on heavily indebted customers.
CBA’s ASX page didn’t have any new company announcement on Tuesday. The gain looks like sector positioning, with investors rotating out of tech and other risk assets, instead of reacting to anything fresh from the bank.
Housing still looks tough. Negative gearing is now limited to new builds, and the current capital-gains tax discount ends from July 2027. Auction clearance rates have dropped under 50%. Economists told Reuters they see home prices falling anywhere from 5% to 10% in the next year.
CBA economists have cut their housing call. “We now expect house prices to be flat over the course of this year,” economist Trent Saunders said. Saunders said Sydney and Melbourne could fall in the short term as investor demand drops. CommBank
The bank heads into the slowdown with a solid lead. First-half cash profit hit an all-time high at A$5.45 billion. Home lending gained 3.7%, business loans were up 6%, and household deposits rose 7.5%. Michael Haynes at Atlas Funds Management pointed to CBA’s growth in business banking and its focus on mortgages. CBA kept taking market share from NAB and ANZ in business banking.
But the risks are still there. CBA’s cash profit for the March quarter came in around A$2.7 billion, missing some analyst expectations. The bank also boosted collective provisions by A$200 million and showed higher loan-impairment charges. “Conflict in the Middle East is disrupting critical supply chains and contributing to global uncertainty,” Chief Executive Matt Comyn said then. Reuters
CBA picked up Tuesday but stayed well off last year’s top. Shares closed about 11% lower for the financial year and ended roughly 14% below their 52-week high.
Banks could see more buying if Wednesday’s inflation data comes in lower, backing calls that 4.35% is the rate peak. If inflation runs hotter, rates would likely stay higher, which may help bank margins for now but weigh on mortgage activity, housing deals, and loan quality over time. That risk is now more important for CBA than the 0.5% jump it posted on Tuesday.
