CBA (ASX:CBA) share price history: What caused the biggest ups and downs?

A brief recent history of the Aussie bank share's price movements.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Commonwealth Bank of Australia (ASX: CBA) share price has charged 23.9% higher in 2021. Shares in Australia's largest bank are now up nearly 80% since the bottom of the March 2020 bear market.

As the ASX bank share approaches a new all-time high, let's take a look at some of the bank's biggest share price moves in recent times.

A girl looks through a microscope at money.

Image source: Getty Images

What has caused the major CBA share price moves?

Let's start with recent history. The coronavirus pandemic in early 2020 saw ASX 200 shares like CBA get smashed last year.

The CBA share price plummeted 36.6% lower in the space of about 6 weeks. At the time, with borders slamming shut and an unprecedented health crisis looming, investors were worried.

However, record government stimulus and a better than expected health response has helped propel the Aussie bank share back towards a new all-time high.

Prior to COVID-19, the CBA share price slid lower for about 6 months in the first half of 2018. The catalyst for this was the 2018 Financial Services Royal Commission established on 14 December 2017.

The Royal Commission examined various aspects of the Aussie financial services sector. There were numerous scandals and practices investigated by the commission which led many to believe further restrictions and sanctions would be imposed on the banks.

The CBA share price fell about 14% between January and June 2018. However, clearly, the Aussie bank share rebounded strongly to hit its current $103.75 level.

Investors would also likely remember the 2008 Global Financial Crisis (GFC). The GFC hit the broader economy, but banking and financial services were in particular strife.

There were some fairly shocking events unfolding in the financial services world. Those included the demise of Lehmann Brothers and Bear Stearns, and a near-collapse of Australia's own Macquarie Group Ltd (ASX: MQG).

Fears of an end to banking as we know it saw the CBA share price plummet more than 50% in the 2008 calendar year. Once again, the share price recovered in the decade that followed, in what was good news for shareholders.

Foolish takeaway

The CBA share price has had its fair share of ups and downs in recent times. Shares in the Aussie bank have been climbing higher in 2021 and are now just shy of a new record high.

Investors will be hoping for more of the good news and less of the past major events that have caused the bank share to slump lower.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Bank Shares

A man in his 30s with a clipped beard sits at his laptop on a desk with one finger to the side of his face and his chin resting on his thumb as he looks concerned while staring at his computer screen.
Bank Shares

Forget CBA shares — here are 2 ASX bank shares I'd rather own right now

CBA shares are trading in the green again today, but I'd still pick these two ASX bank shares instead.

Read more »

Nervous customer in discussions at a bank.
Bank Shares

Why are NAB shares sinking 4% on Monday?

Let's see what NAB has announced on Monday.

Read more »

A woman wearing a yellow and white striped top and headphones plays excitedly with her phone.
Bank Shares

5 reasons to invest $500 in CBA shares

For long-term investors, reliability and scale can matter more than short-term valuation.

Read more »

Australian dollar notes and coins in a till.
Dividend Investing

How many ANZ shares do I need to buy for $10,000 a year in passive income?

ANZ shares have a lengthy track record of paying two dividends a year.

Read more »

View of a business man's hand passing a $100 note to another with a bank in the background.
Bank Shares

In the midst of economic turmoil, what does Morgan Stanley say the ASX banks are worth?

The economic headwinds are building.

Read more »

Three children wearing athletic short and singlets stand side by side on a running track wearing medals around their necks and standing with their hands on their hips.
Bank Shares

ANZ, NAB, Westpac, and CBA shares: Analysts rate 3 to sell, and 1 to buy

One ASX bank stock stands out from the rest.

Read more »

Three businesspeople leap high with the CBD in the background.
Bank Shares

Macquarie shares soar 21% to a 52-week high: Buy, sell or hold?

The investment bank's shares climbed higher again on Wednesday. Here's what analysts expect from the stock next.

Read more »

Woman leaping in the air and standing out from her friends who are watching.
Bank Shares

$5,000 invested in CBA shares two years ago is now worth…

It shows you don’t need high-risk growth stocks to build wealth.

Read more »