Closing Bell: ASX feels the pinch as investors make bank on CBA shares

• Commonwealth Bank shares fall 5pc on yearly results
• ASX falls from near all-time highs as sell down bites
• Weakness in utilities and major resource stocks undercuts resistance

CBA leads sell down

Commonwealth Bank (ASX:CBA) lifted net profits 7% to $10.13 billion, cash profit 4% to $10.25 billion and net interest margin (the gap between interest paid and interest received) increased 0.09% to 2.08%.

Australia’s favourite bank to splash money at is even offering a total yearly fully franked dividend of $4.85 per share.

Apparently, that’s just not enough.

CBA’s shares fell 5.1% today, sliding to $169 per share by the end of trade.

Unfortunately for the broader market, Commonwealth Bank is currently our biggest stock by value. It’s worth about 12% of the total share market.

The ASX 200 consequently shed 0.61% or 53 points, now 0.71% below our all-time high.

Even though si of 11 sectors moved higher today, CBA’s losses meant the broader ASX finished in the red.

Analysts are pointing to the bank’s oversized valuation compared to earnings potential (30-times) and some early warning signs of retail banking weakness as the main culprits.

Most Aussie stocks carry a price-to-earnings ratio of about 20-times, with our major banks averaging closer to 15-times. No wonder CBA’s mammoth ratio is raising some eyebrows.

“We think the market might be disappointed around guidance for FY26 and the lack of signs of acceleration in the key retail segment,” UBS analyst John Storey said.

With the ASX reaching all-time highs over the last couple of days, and UBS maintaining a “sell” rating at a price target of $120, conditions are ripe for some profit taking.

The other banks didn’t fare particularly well either. National Australia Bank (ASX:NAB) fell 2.6%, Westpac (ASX:WBC) 2.1% and QBE Insurance (ASX:QBE) 1.5%.

Energy and resource companies drag

CBA isn’t the only culprit of today’s weakness, of course.

AGL Energy (ASX:AGL) is also dragging utilities lower, shedding 13% after its profits fell 21%.

The electricity and gas supplier is pivoting into batteries, citing falling profits in the hydrocarbon-based energy sectors. Investors appear unconvinced.

While the greater materials sector moved higher today, two of its heavyweights also fell on the wrong side of the balance sheet.

Pilbara Minerals (ASX:PLS) slid 6.5% and Mineral Resources (ASX:MIN) 4.6%, neglecting to offer the market any support.

Now, let’s take a look at which stocks did manage some upward momentum despite the sell down.

ASX Leaders

Today’s best performing stocks (including small caps):

In the news…

OD6 Metals (ASX:OD6) is celebrating the production of a mixed rare earth carbonate product of about 56% total rare earth oxides and a mixed rare earth hydroxide product of 59% TREO using feedstock from the Splinter Rock project.

Management says the results are a major milestone for the project, demonstrating a simplified and scalable heap leach flow sheet process is suitable for producing high-quality, low-impurity rare earth products.

Bayan Mining and Minerals (ASX:BMM) had to stave off an ASX price query as its shares jumped today, swiftly releasing a project update for its rare earth, gold and lithium assets.

BMM’s share price is likely benefiting from increasing interest in US-based rare earth projects like its own Desert Star Project in California’s Mojave Desert. The company is awaiting results from 65 rock chips and 30 heavy mineral concentrate samples from its latest field work there.

Thor Energy (ASX:THR) has offloaded a 75% interest in its US non-core uranium and vanadium projects in return for cash and shares in a deal with Metals One PLC.

THR is set to bank £100,000 in cash alongside £1 million in Metals One shares, with a 12-month exclusive option for Metals One to purchase the remaining 25% interest at a price to be agreed upon at a later date.

G11 Resources (ASX:G11) is looking to buy several copper and gold projects through the acquisition of privately owned company Pacific State Metals (Holdings) Pty Ltd.

G11 is awaiting shareholder approval for a share sale agreement that would see it acquire the Sedgwick Bluff copper-gold, Packsaddle gold-copper, and NW Cobar copper projects.

ASX Laggards

Today’s worst performing stocks (including small caps):

In Case You Missed It

Petratherm (ASX:PTR) has appointed a head of project development to advance technical studies at the Rosewood titanium project in SA.

To drive the next phase of exploration, Waratah Minerals (ASX:WTM) has raised $30m in a placement, targeting extensive drilling at its emerging Spur gold-copper discovery.

Perpetual Resources’ (ASX:PEC) drilling at the Igrejinha project in Brazil’s Lithium Valley indicates the mineralised strike at the SE anomaly may extend to more than 300m.

Locksley Resources (ASX:LKY/ OTCQB: LKYRF) is preparing for extensive mapping later this month at Mojave, adjacent to the only producing rare earths mine in the US.

Antipa Minerals (ASX:AZY) has appointed industry veteran Neil Warburton as a non-executive director to its board.

Kingsland Minerals’ (ASX:KNG) metallurgical test work at the Leliyn asset has made a significant breakthrough in identifying the potential to produce a gallium by-product.

Redcastle Resources (ASX:RC1) is fast tracking a pre-feasibility study at the Queen Alexandra gold project in Leonora.

DigitalX (ASX:DCC) has unveiled an ambitious plan to expand its Bitcoin holdings from approximately 500 BTC to 2,100 BTC by the end of 2027.

Childcare’s evolution: Inside the education shift reshaping Australia’s $15 billion early learning sector.

Last Orders

Albion Resources (ASX:ALB) has been issued the equivalent of $1.4m in Capricorn Metals (ASX:CMM) shares under a binding agreement for the sale of the Mongers Lake project in WA, bringing total consideration received to $1.5m.

There’s potential for another $1.5m in additional payments should CMM field a JORC mineral resource of more than 75koz and initiate a standalone mining operation on the project.

Trading Halts

Adelong Gold (ASX:ADG) – Challenger Gold Mine JV dispute
Bayan Mining and Minerals – price query
EPX Limited (ASX:EPX) – cap raise
Falcon Metals (ASX:FAL) – cap raise
Siren Gold (ASX:SNG) – cap raise
Somerset Minerals (ASX:SMM) – cap raise

At Stockhead, we tell it like it is. While OD6 Metals and Albion Resources are Stockhead advertisers, they did not sponsor this article.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.