Why CBA suffered its biggest one-day move in history | The Business | ABC NEWS
Commonwealth Bank shares closed down around 10% today, following announcement of their quarterly trading update.
That is its largest one-day fall on record — overtaking the previous single-day fall, which was on March 16, 2020 during the pandemic.
Outside of March 2020, its next biggest percentage drops were in December 2008, during the global financial crisis (GFC).
Deputy portfolio manager at Wilson Asset Management, Anna Milne says today’s drop was driven by several factors including a soft trading update and the federal budget’s changes to the capital gains tax discount and negative gearing.
“CBA is considered the highest quality, safest, most robust stock, certainly in Australia, and one of the most in the world, and as a result of that, its valuation is pretty high, and what that means is that when there’s any risk to earnings and any downside surprise to earnings that can really shock the share price, so we saw that as well today.” She said.
Anna Milne said the impact of the budget on house prices and credit growth means it’s “definitely a headwind for Australian banks”, especially CBA.
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