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The Xero Limited (ASX: XRO) share price has been one of the best performers on the S&P/ASX 200 Index (ASX: XJO) on Wednesday.

At one stage today the cloud-based business and accounting platform provider’s shares were up over 13% to a record high of $130.50.

The Xero share price has since pulled back a touch but is still up a decent 6.5% at the time of writing.

Why is the Xero share price zooming higher today?

Investors have been buying Xero shares on Wednesday for a couple of reasons.

The first is the impending release of its half year update tomorrow morning.

It appears as though some investors are expecting the company to deliver a strong result despite the negative impact that COVID-19 is having on small businesses.

What else is driving the Xero share price higher?

Also giving Xero’s shares a boost today is its inclusion in the illustrious MSCI Global Standard index this morning following its quarterly review.

Xero was the only ANZ based company out of 141 new additions to the index this morning. Thankfully for local investors, no Australian companies were among the 135 companies that were deleted from the index.

Given that the MSCI Global Standard index is one that fund managers and index funds track, the buy side has been a lot firmer than usual today and helped drive its shares higher.

What is the MSCI Global Standard index?

The MSCI Global Standard index is MSCI’s flagship global equity index. It is designed to represent the performance of the full opportunity set of large and mid-cap stocks across 23 developed and 26 emerging markets.

According to MSCI, as of December 2019, the index covered more than 3,000 constituents across 11 sectors and approximately 85% of the free float-adjusted market capitalisation in each market.

It has been built using MSCI’s Global Investable Market Index (GIMI) methodology, which is designed to take into account variations reflecting conditions across regions, market cap sizes, sectors, style segments, and combinations.

More reading

• ASX 200 up 1.3%: CBA Q1 update, tech shares rebound, JB Hi-Fi sinks
• Why CBA, Straker, Woodside, & Xero shares are surging higher
• 3 great ASX tech shares to buy
• Why ASX 200 technology shares are again racing higher
• How did the WAAAX shares perform in the last quarter?

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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A natural human need for “emotional comfort” costs retail investors 3% in lost returns each year.

However, United Kingdom behavioural finance firm, Oxford Risk, warned this week that losses in the year of the COVID-19 pandemic would be even higher.

This is because emotions take over even more in times of volatility.

“During a crisis, investors are likely to focus too much on the present and on the detail, feeling compelled to do something even when sitting tight is the best solution,” stated the company.

“They can gravitate towards the familiar – often leading to underinvestment, selling low, or decreased diversification.”

These behaviours are common to many investors, even experienced ones.

Oxford Risk Chief Executive, Dr Marcus Quierin, said such acts devastatingly result in turning theoretical losses into actual ones.

“If they don’t need to withdraw money for immediate expenses, then the losses are only virtual… until they panic and make them real,” he said. 

“The investments in the news are not your investments. Retail investors should avoid watching the markets day-to-day as this will only increase anxiety to no useful end, and make you feel like you should be doing something, without any useful guidance to what that should be.”

If your original strategy was to invest for the long haul, Quierin said, then any market volatility should be viewed through long-term lenses.

Focus on what you can control

The Oxford Risk study found that many retail investors have increased their proportion of cash this year because of the volatility.

But this reluctance to invest would cost them 4% to 5% per year over the long term.

Losses due to timing — selling low and buying high — was calculated at an average of 1.5% to 2% per year.

Quierin said trying to time the market is a mug’s game.

“Investors should focus on what they can control. It’s the most ancient advice there is, and still the most important,” he said.

“You can’t move the market or predict when it’s at the ‘bottom’ or the ‘top’. You can postpone discretionary spending and use tumultuous times as an opportunity to take stock of your long-term financial plans. And you can control the opportunity to benefit from the ‘risk premium’ – the long-term reward for owning shares that has eventually weathered every short-term storm yet.”

The volatility of 2020 is perfectly demonstrated in the wild ride that the S&P/ASX 200 Index (ASX: XJO) has had. 

When the market crashed in March during the first coronavirus lockdown, the index lost 36%. Then from that trough, it has gained more than 40% as at 11 November.

Oxford Risk develops software that assists financial advisers and institutional investors to overcome behavioural biases.

“There is too much guesswork and not enough technology. This means that assessment of client emotional proclivities is noisy, biased and prone to error… it is too subjective,” said Oxford Risk behavioural finance head, Dr Greg B Davies.

“This is not to advocate removing humans from the process… Human conversations are vital, particularly in a crisis, but advisers need to be assisted by better diagnostic tools enabling accurate assessment of the client’s personality and likely behavioural tendencies.”

More reading

• ASX 200 up 1.3%: CBA Q1 update, tech shares rebound, JB Hi-Fi sinks
• 5 things to watch on the ASX 200 on Wednesday
• Enjoying your ASX 200 gains? Here’s why you should watch out for January
• Vaccine hopes cause ASX 200 to rise on Tuesday
• Why the JB Hi-Fi (ASX:JBH) share price is down 7% today

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The JB Hi-Fi Limited (ASX: JBH) share price is out of form again on Wednesday and is sinking lower.

In afternoon trade the retailer’s shares are down 5% to $44.20.

This means the JB Hi-Fi share price is now down almost 17% from the all-time high it reached just three weeks ago.

Why is the JB Hi-Fi share price sinking lower?

Investors have been selling the retailer’s shares this week amid news that there could soon be an effective COVID-19 vaccine rolled out globally.

As backwards as it might sound, this is being seen as bad news for companies like JB Hi-Fi.

This is because it has been a big winner during the pandemic as investors redirect their spending away from travelling onto entertainment and homewares.

It was for this reason this morning that equity analysts at Macquarie Group Ltd (ASX: MQG) downgraded the company’s shares to a neutral rating and cut the price target on them by almost 10% to $49.50.

According to the note, if the vaccine is a success, the broker expects that consumer behaviour will return to normal in 2021. This is likely to result in a slowdown in its growth as consumers start traveling again.

What about other retailers?

Analysts at Morgans also expect this to be the case and have been adjusting their recommendations today.

It has reduced the multiples for shares that it believes are likely to be impacted by a redirection in spending as the world returns to normal.

Two retailers that have been impacted are Accent Group Ltd (ASX: AX1) and Super Retail Group Ltd (ASX: SUL).

The broker has downgraded Accent’s shares to a hold rating with a reduced price target of $1.67. As for Super Retail, its shares have been downgraded by Morgans to a hold rating with a reduced price target of $11.78.

More reading

• Why Bingo, Evolution, JB Hi-Fi, & Super Retail shares are dropping lower
• ASX 200 up 1.3%: CBA Q1 update, tech shares rebound, JB Hi-Fi sinks
• Why the JB Hi-Fi (ASX:JBH) share price is down 7% today
• What big brokers are thinking about the Macquarie (ASX: MQG) share price after its interim results
• 2 ASX dividend shares with above-average yields

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Super Retail Group Limited. The Motley Fool Australia has recommended Accent Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Botanix Pharmaceuticals Ltd (ASX: BOT) share price is surging higher today after a positive announcement.

In the minutes after market open, shares in the synthetic cannabinoid company jumped as high as 11.5 cents. The Botanix share price has retreated slightly during the day to 11 cents, up 15.79% at the time of writing.

What does Botanix do?

Botanix is a synthetic cannabinoid pharmaceutical company that focuses on dermatology and antimicrobial products.

Based in Perth, Australia and in Philadelphia, United States, the company has a pipeline of product candidates undergoing clinical trials. Botanix aims to address patients who have serious skin diseases, as well as prevent surgical site infections.

Pre-IND meeting completed

Botanix advised that it successfully completed a pre-Investigational New Drug (IND) meeting. The appointment took place with the United States Food and Drug Administration’s (FDA) office of Infectious Diseases for its lead antimicrobial program, BTX 1801.

The pre-IND meeting provided Botanix an opportunity to seek advice and clarification from the FDA on what’s required to initiate clinical studies. In addition, the company received feedback on the drug development plan for BTX 1801 to fast-track its FDA process. In April, Botanix was granted Qualified Infectious Disease Product status, giving the company priority FDA review and faster two-way communication.

Before the meeting had occurred, Botanix submitted data outlining the successful results from its pre-clinical studies. In addition, the company also provided the FDA with future manufacturing and clinical development plans.

The FDA stated that the data and development package was sufficient to begin clinical trials in the US. Should the study become a success, an IND application will follow.

Currently, Botanix is in a Phase 2a trial for BTX1801 in Western Australia. The study is fully enrolled and expected to be finished at the end of the calendar year. Data from the antimicrobial trial will be available shortly after completion, and provided to investors in due course.

What did management say?

Botanix president and executive chair Vince Ippolito commented on the achievement, saying:

We are very pleased with the excellent outcomes from the Pre-IND meeting. Botanix is now well placed to initiate clinical development of BTX 1801 in the US under an accelerated development path with the FDA.

About the Botanix share price

The Botanix share price has been on a wild run of late, jumping from 4.9 cents at the start of September to 10.5 cents today. This represents a gain of more than 114% in the space of less than 3 months.

Reaching a 52-week high in October of 12.5 cents, Botanix is just shy of regaining that feat again.

The company is still considered as a small-cap share with a market capitalisation of $102.1 million.

More reading

• The Botanix (ASX:BOT) share price is soaring 15% higher today. Here’s why.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Synlait Milk Ltd (ASX: SM1) share price came out of a trading halt today, dropping 9.75% to $5.00 before recovering to $5.25 at the time of writing. The drop in Synlait Milk’s share price came after an announcement that the company would conduct a capital raising.

How will Synlait Milk raise capital?

Synlait Milk announced yesterday that it will raise approximately NZ$200 million. This will consist of a placement to raise NZ$180 million and an underwritten share purchase plan to raise NZ$20 million.

The placement will be conducted at a share price of NZ$5.10, representing a discount of 14% to the company’s trading price before the capital raising was announced. Synlait Milk announced today that the placement was fully subscribed.

The company’s share purchase plan will allow existing shareholders to purchase up to NZ$50,000 worth of Synlait Milk shares. The price of the share purchase plan will be the lower of NZ$2.10 per share or the 5-day volume weighted average price of Synlait Milk shares trading on the New Zealand Stock Exchange in the last 5 days of the SPP offer period. The record date for the share purchase plan was 9 November 2020 and an offer booklet will be sent out to shareholders on 13 November 2020.

According to Synlait Milk, the proceeds of the capital raising will be used to start manufacturing new product lines as part of a recent agreement with a global category leader and to strengthen the company’s balance sheet.

Synlait Milk guidance for FY21

Synlait Milk also released the following guidance for the 2021 financial year:

• Volumes for consumer packaged infant formulas expected to be lower in FY2021 than FY2020
• Net profit after tax (NPAT) in the first half of FY2021 to be significantly lower than it was in the first half of FY2020
• NPAT for the full 2021 financial year expected to be slightly lower than FY2020

About the Synlait Milk share price

Synlait Milk is a New Zealand dairy processor that produces products for infant nutrition and adult nutrition along with everyday dairy and dairy-based products. Synlait Milk has been listed on the ASX since 2016.

The Synlait Milk share price is up 21.25% since its 52-week low of $4.33, however, it is down 39.10% since the beginning of the year. The Synlait Milk share price is down 38.16% since this time last year.

More reading

• Synlait (ASX:SM1) share price 8% higher on land covenant settlement
• Why the Synlait (SM1) share price is falling today

Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It can be an interesting insight to know what brokers think of an ASX dividend share. The problem is that a single broker can be wrong or biased.

If you can get a consensus among brokers about which shares are best, then that may give a clue about what to buy and what to avoid.

Every so often MarketIndex collates the broker recommendations of 150 ASX shares and totals the buys, holds and sells for those shares. The higher or lower the average score the more of a strong buy, buy, hold, sell or strong sell that share is rated.

MarketIndex cautioned that a high dividend yield can indicate a falling share price or limited growth prospects.

Here are three of the ASX dividend shares rated as buys by brokers:

Charter Hall Social Infrastructure REIT (ASX CQE)

This is a real estate investment trust (REIT) which invests in social properties like early learning centres. However, it has recently expanded its investment mandate to consider other properties to add diversification.

As an example of this move, it recently announced the $122.5 million acquisition of a property that is under construction which will be the new corporate headquarters of Mater Misericordiae, Queensland’s largest Catholic not-for-profit health provider.

It had a 99.5% occupancy rate for its 395 properties with a weighted average lease expiry (WALE) of 12.7 years at 30 June 2020.

The ASX dividend share also just announced the acquisition of the South Australian Emergency Services Command Centre and multi-deck carpark which is currently under construction. It’ll be purchased for $23 million and fund the rest of the build for a total cost of $80 million. This has a 15-year lease with fixed 2.5% annual rent increases and two 5-year options.

It has previously provided distribution guidance of 15 cents per unit in FY21, which turns into a yield of 4.9% at the current Charter Hall Social Infrastructure REIT share price.

IOOF Holdings Ltd (ASX: IFL)

IOOF is now one of the largest financial advice businesses in the country after making the recent acquisitions from Australia and New Zealand Banking Group Ltd (ASX: ANZ) and MLC from National Australia Bank Ltd (ASX: NAB).

The IOOF share price is still down by 55% from the highs in January. The company recently announced its quarterly update. At 30 September 2020, its funds under management, advice and administration (FUMA) rose by around half a billion to $202.8 billion.

IOOF CEO Renato explained why IOOF is focused on financial advice: “We are at an inflection point of change for the Australian advice landscape. The value of quality financial advice has never been more apparent than it is today. Equally the need to create a professional business model has never been more apparent.”

Commsec has estimates for FY23 where IOOF has a projected grossed-up dividend yield of 10.7% and it’s trading at 9x FY23’s estimated earnings at the current IOOF share price.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

Before COVID-19, Sydney Airport was paying a steadily-growing dividend from its cashflow as more passengers passed through the airport.

But COVID-19 has heavily impacted passenger numbers. In September 2020, total passenger numbers were down 96.4%. However, the company pointed out that travel restrictions between NSW and SA, between NSW and the NT, and between NSW and New Zealand are now being lifted.

Commsec has estimates for the FY22 year. Sydney Airport is projected to return to making a profit in FY22. It’s also estimated to pay dividends amounting to 20.5 cents per share, which equates to a dividend yield of 3% at the current Sydney Airport share price.

More reading

• Vaccine hopes cause ASX 200 to rise on Tuesday
• Why the Sydney Airport (ASX:SYD) share price rocketed 24% higher today
• ASX 200 up 1.6%: COVID-19 vaccine news sends Flight Centre, NAB, & Qantas surging higher
• ASX 200 Weekly Wrap: US election special
• How you could have turned $20,000 into $250,000 in 10 years with ASX shares

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Cochlear Limited (ASX: COH)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $229.00 price target on this hearing solutions company’s shares. The broker notes that its industry research shows that most U.S. patients which postponed implant procedures at the height of the pandemic have now had them implanted. It feels this supports the view that trading conditions are returning to pre-COVID 19 levels. In addition, its analysts found that there is a preference for Cochlear’s product among patients due to their quality and design. The Cochlear share price is trading at $228.54 this afternoon.

Collins Foods Ltd (ASX: CKF)

Analysts at Morgans have retained their add rating and lifted the price target on this quick service restaurant operator’s shares to $10.80. According to the note, the broker believes that Collins Foods’ KFC and Taco Bell restaurants will benefit from a return to normality following the release of an effective COVID-19 vaccine. This follows news that Pfizer has had very positive results from its phase 3 trial. The Collins Foods share price is changing hands for $10.01 on Wednesday.

Pushpay Holdings Ltd (ASX: PPH)

A note out of Goldman Sachs reveals that its analysts have retained their conviction buy rating and $10.35 price target on this donation management and community engagement platform provider’s shares. It notes that at the broker’s recent tech forum, Pushpay revealed that it is observing early indications of stickiness with digital giving. It also expects the integration of Church Community Builder to help it capture a greater share of the wallet. This is particularly the case among larger churches which see value in a full service one stop shop offering. The Pushpay share price is fetching $7.17 this afternoon.

More reading

• 2 fast-growth ASX tech shares that are being sold off
• Pushpay (ASX:PPH) investor day presentation: any updates to recover its share price?
• 3 mid-cap ASX shares with recent price pullbacks
• Reasons to be confident and cautious as ASX shares are bouncing back
• 2 ASX healthcare shares to buy today

James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. and PUSHPAY FPO NZX. The Motley Fool Australia has recommended Cochlear Ltd., Collins Foods Limited, and PUSHPAY FPO NZX. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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When an investor mentions ‘infrastructure’ companies on the ASX, one’s mind might turn to companies like Transurban Group (ASX: TCL), the famed tollroad operator. Or perhaps Sydney Airport Holdings Pty Ltd (ASX: SYD), the eponymous company behind Sydney’s sole international airport. Infrastructure companies have (or at least used to have) a reputation for being amongst the ‘safest’ investments on the ASX. Sure, you probably weren’t going to get yourself a 10-bagger in this sector, but you would get a steady, inflation-resistant stream of income.

However, like most sectors, the coronavirus pandemic has wreaked havoc on this sector, and by extension, this reputation. Transurban suddenly wasn’t too defensive when we all had to stay indoors for months earlier in the year, and working from home suddenly became necessary. And I’d wager we don’t need to discuss in detail the damage the pandemic has done to airports, as well as the entire travel sector.

That’s why this highly diversified infrastructure share might be worth a look today instead.

Enter Magellan Infrastructure Fund (ASX: MICH)

Magellan Infrastructure Fund is an infrastructure investment you might want to consider today if steady income and defensive investing is important to you and your portfolio. This fund isn’t a company, instead it is an ‘active exchange-traded fund (active ETF). This means that it is essentially a managed fund that you can buy units of on the ASX, just like any other ASX share, rather than having to go through the conventional ‘off-market’ transactions of a traditional managed fund.

This fund holds between 20 and 40 individual companies hailing from all around the world. A plurality of the holdings are US-listed (41%), but Europe, the Asia Pacific and Canada also feature heavily in the listings.  These companies cover a range of sectors within infrastructure, including airports, toll roads, electricity and water utilities and communications. Incidentally, Transurban is a large holding in the fund, as of 30 September.

Since this fund’s inception, it has returned an average of 5.1% per annum. It compares favourably to the funds’ index benchmark (the S&P Global Infrastructure Index), which has returned an average of 1.3% per annum over the same period.

Over the past 12 months, Magellan Infrastructure Fund has paid out 11.7 cents per unit in dividend distributions. That gives this fund a trailing yield of 3.99% on current prices.

Is this fund a buy today?

The Motley Fool’s Dividend Investor service currently rates Magellan Infrastructure Fund as a ‘buy’. Ed Vesely and the team at Dividend Investor like this fund’s track record of beating its index, as well as the global diversification it brings to the table (not to mention the yield, of course).

More reading

• Where to invest $20,000 into ASX shares today
• Commonwealth Bank (ASX:CBA) share price higher on Q1 and loan deferral update
• Macquarie Telecom (ASX:MAQ) share price surges on contract win
• How high-yield dividend stocks could make a generous passive income
• Why Bingo, Evolution, JB Hi-Fi, & Super Retail shares are dropping lower

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Transurban Group. The Motley Fool Australia has recommended Magellan Infrastructure Fund. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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At the weekend I wrote about how $20,000 investments had fared in certain shares over the last 10 years.

But that was then, what about the next 10 years? If you’re in a position to invest $20,000 into the share market, then these buy-rated shares might be the ones to look at.

Here’s what you need to know:

Nearmap Ltd (ASX: NEA)

Nearmap is a leading aerial imagery technology and location data company. It gives businesses instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools. This means that users can undertake site visits from the comfort of their home or workplace, which offers both significant time and cost savings.

Management appears confident that it is well-positioned for growth thanks to its recent capital raising and new growth initiatives. It is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.

One broker that likes what it sees here is Macquarie. It currently has an outperform rating and $3.20 price target on Nearmap’s shares. It notes that its capital raising will bolster its balance sheet, allows management to push ahead with growth plans in the US, and enables the roll out of HyperCamera3.

ResMed Inc. (ASX: RMD)

ResMed is a medical device company with a focus on sleep treatment products and ventilators. It has been growing at a consistently strong rate over the last decade thanks to its industry-leading products and the growing awareness of sleep disorders.

The good news for ResMed is that it still has a very large market opportunity to grow into in the future. Management estimates that there are 936 million people with sleep apnoea globally, with the majority of these sufferers undiagnosed. In addition to this, the company notes that there are 380 million people who suffer from chronic obstructive pulmonary disease (COPD) and over 340 million people living with asthma. These are all people whose lives could be improved with ResMed’s products in the future. 

Last week analysts at Credit Suisse upgraded ResMed’s shares to an outperform rating with a $31.00 price target. The broker believes ResMed is perfectly placed to benefit from a post-pandemic shift to home health care. It expects this to underpin double-digit earnings growth over the medium term.

More reading

• Why ResMed (ASX:RMD) and these ASX shares just hit record highs
• ASX 200 jumps 1.75% on Monday
• These were the best performing ASX 200 healthcare shares in October
• Leading brokers name 3 ASX shares to buy today
• Why the ResMed (ASX:RMD) share price smashed the market in October

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia has recommended Nearmap Ltd. and ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Commonwealth Bank of Australia (ASX: CBA) share price has been a positive performer on Wednesday and is pushing higher in afternoon trade.

At the time of writing, the banking giant’s shares are up 2% to $73.83.

Why is the Commonwealth Bank share price pushing higher today?

There have been a couple of catalysts for the rise in the Commonwealth Bank share price today.

The first is the release of its first quarter update, which revealed a stronger than expected cash net profit after tax of $1.8 billion.

While this was a 16% decline on the prior corresponding period, a note out of Goldman Sachs reveals that it is run-rating ~6% ahead of what is implied by the broker’s half year forecasts. This was driven largely by lower than forecast bad and doubtful debt charges.

COVID-19 temporary loan deferral update.

Also giving the Commonwealth Bank share price a boost today was the release of an update on its COVID-19 temporary loan deferrals.

According to the release, at the end of October there was a net reduction in total loan deferred facilities of 59%, representing a monthly net reduction in deferred balances of ~$21 billion.

New approved deferrals totalled $4.6 billion during the month, of which $4.5 billion were an extension of an existing deferral.

There are now approximately 52,000 loans in deferral, down 75% from the 210,000 it recorded at the end of June.

Which loans are being deferred?

There has been a net reduction in deferred home loan facilities of 51% during the month of October, representing a monthly net reduction in deferred balances of ~$18 billion.

9,300 facilities have been granted an extension of their deferral arrangement for a period of up to 4 months. Victoria continued to account for the largest proportion of monthly deferral extensions (39%).

At the end of the period there were approximately 45,600 home loans still in deferral. Of these, 27% (balances of $4.8 billion) are due to expire and exit in November.

In respect to SME loans, there was a net reduction in deferred SME loan facilities of 87% during the month of October. This represents a monthly net reduction in deferred balances of $2.5 billion.

Approximately 4,200 SME loans remained in deferral at the end October (balances of $1.5 billion), with 31% ($0.5 billion) of these due to expire and exit in November.

More reading

• ASX 200 up 1.3%: CBA Q1 update, tech shares rebound, JB Hi-Fi sinks
• Why CBA, Straker, Woodside, & Xero shares are surging higher
• CBA (ASX:CBA) share price lifts on first quarter results
• These ASX dividend shares offer 4.5%+ dividend yields
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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