ASX Blue Chip Wrap: CSL & CBA Share Price Up on Results

At time of writing, the share prices of CSL Ltd [ASX:CSL] and Commonwealth Bank of Australia [ASX:CBA] are up .82% and 2.03% respectively.

CSL shares are up nearly 70% and CBA shares are up more than 17% over the last 12 months.

The CBA share price is now pulling away in the charts and is breaking through resistance at $82.

ASX 200 - CBA Share Price Chart

Source: tradingview.com

Today we look at the highlights from the two companies’ results and the outlook for blue chips for 2020.

Highlights from results push share prices higher

Here are the highlights from CSL’s results:

  • Revenue and NPAT both up 11% to $4.98 billion and $1.29 billion respectively
  • Strong growth in immunoglobulin portfolio
  • Sales of Privigen and Hizentra products up 28% and 37% respectively

So a strong half-yearly report for CSL, something that most in the market likely expected given it only moved slightly on the announcement.

In other words, investors appear to have already priced in the results.

The CBA share price moved more however on their announcement.

Here are the highlights from their results:

  • Statutory profit up 34% to $6.2 billion
  • Cash NPAT down 4.3% to $4.5 billion
  • Dividend of $2 maintained

The last of these points is perhaps the biggest one for investors.

While other banks have cut their dividends, CBA has managed to maintain theirs.

It’s part of their appeal as an investment — and it appears that CBA is clearly leading the pack amongst the Big Four.

In the past we have been bearish on CBA’s prospects — but the market is telling us we were wrong, for now.

But time frame is everything.

More rate cuts on the horizon could eventually squeeze margins.

So the CBA share price run may eventually unwind.

For now though, it’s looking positive for the company.

Outlook for ASX blue chips 2020

Our editor, Ryan Dinse, highlighted the various reasons why 2020 would be another bull year for the market at the end of 2019.

Governments could look to pump more money into the system, something which they have done in the past.

They are repeat offenders when it comes to this.

So until there is some massive shift in policy from the Fed or the RBA, I don’t see blue chips like CSL and CBA going off the boil.

The small-cap space may be where the real opportunity is though.

You can get our analysis on our three favourite small-caps here.

Regards,

Lachlann Tierney,
For Money Morning


Lachlann Tierney is a writer for Money Morning and has been investing for nearly a decade. With a Masters of Science from the London School of Economics, he brings a sound understanding of global markets to his writing. Lachlann is interested in emerging technologies, energy solutions and helping people invest their money wisely. Recently he has been working with Ryan Dinse. Ryan is involved in three publications:


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