The performance elastic band that’s defined Australian stocks over recent months is perfectly illustrated by the largest 2 companies on the ASX : CBA and CSL. Overall this shouldn’t be a major surprise with the former benefitting from rising bond yields and vice-versa but with our view that yield appreciation is due a decent rest, this is likely to flow through to stock / sector performance implying some reversion feels close at hand. MM believes the CBA – CSL elastic band has further to stretch but it does feel reasonably mature for this stage of the move.
Commonwealth Bank (CBA) $86.38 – MM will consider trimming our position (not closing) in the low $90 region.
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Commonwealth Bank (CBA) v CSL Ltd (CSL) Indices
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Commonwealth Bank (CBA) v CSL Ltd (CSL) Indices
