Why CBA is set to surge

Commonwealth Bank shares are likely to resume their march northward as the bank buys shares to cover its DRP.

Top heavy it may appear, but the Commonwealth Bank (CBA) shares are likely to again punch through to new records as the dividend effect gathers momentum.

CBA’s decision to exercise restraint on its final dividend, despite a better than expected full-year profit, saw the stock under sustained pressure, falling to just above $70.

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