...the surprising truth behind CBA's uncharacteristic rise.
...US pension fund buying in, which makes sense for them because
(i) lacking faith in their US banking system, they flock to our banks in robust health
(ii) our AUD is cheap, and a way to diversify out of the USD.
...good news for long term CBA holders, but when their buying ends, the rally ends too as we saw today. US pension fund buys ‘large number’ of CBA shares: Comyn
Joanne Tran
Commonwealth Bank chief executive Matt Comyn says a US pension fund bought a large number of shares in the major bank.
“What we’ve seen is a number of large buy side orders coming through domestically and even recently, I saw a large order come through from one of the US pension funds ... they bought a large number of shares,” Comyn said when replying to The Australian Financial Review’s Jennifer Hewett about the bank’s valuation.
Analysts and fund managers have touted CBA’s share price as overpriced or fully priced. It closed at a record high on Friday and was 2 per cent lower at $119.02 in afternoon trading.
“The most important thing for us is that we think about the long-term strategic operational performance and predictability and consistency of earnings,” he said. “That’s really what underpins the valuation, certainly over the medium and long term.”
