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Jonathan Shapiro

The CBA share price premium is really getting out of hand

The bank’s inexplicable and self-perpetuating melt-up that veteran analysts unanimously agree defies the fundamentals is powering the broader index.

Jonathan ShapiroSenior reporter

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It’s a topic that has dominated broker morning meetings for weeks and has been the source of countless calls from offshore hedge funds and local investors. And so it should. An inexplicable and self-perpetuating melt-up that veteran analysts unanimously agree defies the fundamentals is powering the broader index to all-time highs.

This is no fast-growing artificial intelligence play that is delivering break-neck revenue growth. Nor is this a magnificent mega-cap tech stock in the midst of an unstoppable land-grab. This is Commonwealth Bank.

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Jonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney. Connect with Jonathan on Twitter. Email Jonathan at jonathan.shapiro@afr.com

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    Original URL: https://www.afr.com/link/follow-20180101-p5f1wi