Commonwealth Bank has reset its record high seven times on the ASX this month alone, confounding equity brokers and fund managers, who have long warned the shares are overvalued and are a screaming sell.

But pundits say steady buying from a loyal band of retail investors have underpinned the rally, thanks to its juicy dividends and a deep attachment to the bank’s legacy. The shares have rocketed 40 per cent this year and hit a fresh peak of $157.80 on Tuesday, well above the benchmark’s S&P/ASX 200’s 10 per cent advance.