Sydney, July 9, 2026, 04:01 (AEST)
- Commonwealth Bank of Australia ASX:CBA closed July 8 at A$168.18, up 0.89%, against a 0.21% fall in the S&P/ASX 200 (INDEXASX:XJO).
- The ASX cash market was outside normal trading at the dateline time; normal trading runs from 09:59:45 to 16:00 Sydney time.
- CBA still trades at a rich multiple: about 27 times earnings, with a dividend yield just below 3%.
At 04:01 in Sydney, Commonwealth Bank of Australia ASX:CBA was no longer trading. The ASX cash market’s normal session had ended hours earlier, with the main trading phase running from 09:59:45 to 16:00 Sydney time and auction/post-close phases after that.
The useful signal was Wednesday’s close. CBA finished at A$168.18, its high for the day, after opening at A$165.10 and trading as low as A$164.13. Volume was about 1.76 million shares. The S&P/ASX 200 (INDEXASX:XJO) fell 0.21% to 8,785.10.
| Instrument | July 8 close | Daily move | Read-through |
|---|---|---|---|
| Commonwealth Bank of Australia ASX:CBA | A$168.18 | +0.89% | Bank bid held despite softer index |
| Westpac Banking Corp ASX:WBC | A$36.25 | +0.33% | Lagged major-bank peers |
| National Australia Bank Ltd ASX:NAB | A$39.59 | +0.94% | Kept pace with CBA |
| ANZ Group Holdings Ltd ASX:ANZ | A$35.87 | +1.21% | Strongest of the four on the day |
| S&P/ASX 200 (INDEXASX:XJO) | 8,785.10 | -0.21% | Broader market slipped |
That makes CBA’s gain less a single-stock story and more a bank-sector bid. ANZ Group Holdings Ltd ASX:ANZ and National Australia Bank Ltd ASX:NAB rose more than CBA, while Westpac Banking Corp ASX:WBC also closed higher. CBA still matters most because it carries the sector’s biggest valuation burden.
The rate backdrop is not clean. The Reserve Bank of Australia’s cash-rate target is 4.35%, and annual CPI was running at 4.0% in May. In a July 8 speech, RBA Assistant Governor Sarah Hunter said a supply shock with a persistent inflation effect could mean “some tightening might be called for.” Reserve Bank of Australia
For CBA, that cuts both ways. Higher rates can help bank margins, but they also slow loan growth and test borrowers. In May, the bank said March-quarter cash net profit after tax was about A$2.7 billion, up from A$2.6 billion a year earlier, while loan impairment charges rose to A$316 million from A$223 million. CBA also lifted collective provisions by A$200 million, citing geopolitical and macro uncertainty. Chief Executive Matt Comyn said: “Conflict in the Middle East is disrupting critical supply chains.” Reuters
| Major bank | Price | Market cap | P/E | Dividend yield |
|---|---|---|---|---|
| Commonwealth Bank of Australia ASX:CBA | A$168.18 | A$281.44 bln | 27.22 | 2.94% |
| Westpac Banking Corp ASX:WBC | A$36.25 | A$123.99 bln | 17.87 | 4.25% |
| National Australia Bank Ltd ASX:NAB | A$39.59 | A$121.2 bln | 19.80 | 4.33% |
| ANZ Group Holdings Ltd ASX:ANZ | A$35.87 | A$108 bln | 18.21 | 4.68% |
The table is the trade. CBA offers the lowest yield and the highest earnings multiple of the major banks. That can work when investors pay up for deposit strength, loan-book quality and execution. It becomes harder when inflation keeps the RBA on guard and credit growth slows.
Morningstar analyst Nathan Zaia has been blunt on that point. After CBA’s May selloff, he wrote that the “shares are materially overvalued” and said a forward P/E near 24 times and a yield around 3% were hard to square with mid-single-digit earnings growth. Morningstar
Consensus data points in the same direction, though consensus is not a timing tool. StockAnalysis, using analyst inputs, lists an average CBA price target of A$122.57, about 27% below the July 8 close, with a “Strong Sell” consensus from 14 analysts. It also puts CBA’s trailing P/E at 27.07 and price-to-book at 3.64. StockAnalysis
There is a reason the premium has survived. CBA’s first-half cash profit rose 6% to A$5.45 billion, above the Visible Alpha consensus cited by Reuters. Home lending grew 3.7%, business lending rose 6%, household deposits gained 7.5%, and the bank declared a A$2.35 interim dividend. Atlas Funds Management analyst Michael Haynes said the “main highlight” was business-bank growth and mortgage execution. Reuters
The July 8 close says buyers were willing to pay for that record, even on a weaker index day. It does not remove the valuation problem. CBA’s 52-week high is A$185.59, its low is A$146.98, and the stock remains below the upper end of that range despite Wednesday’s gain.
The next pressure points are macro, not cosmetic. The RBA’s next CPI update is due July 29, and the next cash-rate update is scheduled for Aug. 11. For a bank priced like CBA, the market is asking for steady profit, low credit loss and no fresh rate shock at the same time.
