CBA share price free fall continues

AUD is stable through the morning:

Bonds are bid:

XJO is flat:

Dalian too:

Big iron is rebounding:

Big Gas is down:

Big Gold is mixed:

The CBA free fall below broken support continues. WBC too. Given the 10% divi-bribe, markets are definitely beginning to price an earnings problem:

No such issues for REA which must deal in coconuts not property!

MEA back at record lows…

Comments

  1. Forget CBA.

    Somehow SLX trading volumes have plummeted from 2.65m the day before yesterday to 0.87m yesterday to 0.1m this morning. Global X was inactive the day before yesterday, so the selling was entirely unforced – capitulation of long term holders?

    • I guess we don’t know until we see their earnings and dividends for the next few quarters. Current signs are for net interest margins and earnings to keep getting squeezed. I would guess (and it’s a guess) the market is nowhere near pricing this in enough.

      We are also still a long way off the RC final recs being made (and then waiting to see if the govt will implement any) so there’s that risk too. Of course that may turn out to be an upside risk as the banks have a habit of getting off very lightly!

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