Big gains by the heavyweight banks and the major retailers have driven the Australian share market higher after strength on Wall Street lifted investor confidence.
The benchmark S&P/ASX200 was up 0.75 per cent at 5,714 points at the close on Friday.
Morgans senior private client adviser Bill Chatterton said the financial sector has benefited from a lift in global risk appetite driven by Wall Street.
In the US overnight, shares consolidated gains a day after the Dow Jones Industrial Average hit 20,000 points for the first time, partly due to solid company earnings reports.
“There is also general optimism – almost ironic optimism – over Donald Trump’s first week in power because he is doing what he said he will do,” Mr Chatterton said.
“He’s not taking any backward steps which is good for markets because markets don’t like indecision and we are getting some benefit from that as well as the fact the US economy continues to perform well.”
However, gold miners slumped after a retreat in gold prices.
At the close, the Commonwealth Bank was 75 cents higher at $82.98, National Australia Bank gained 42 cents to $30.68, Westpac rose 58 cents to $32.35 and ANZ climbed 30 cents to $29.77.
As for the major supermarkets, Wesfarmers, which owns Coles, added 42 cents to $41.12, and Woolworths jumped 51 cents – a two per cent gain – to $25.16.
The big miners were mixed as some investors took profits, following strong recent strong gains. BHP Billiton fell 37 cents to $27.52, while Rio Tinto rose 62 cents to $67.85.
Gold miner Newscrest dropped 58 cents, or 2.67 per cent, to $21.18, while fellow gold miner Evolution gave up 15 cents, or 6.61 per cent, to $2.12.
Energy stocks performed well after oil prices rose by two per cent overnight. Oil and gas producer Woodside Petroleum added 23 cents to $32.31, and Santos gained six cents to $4.07.
Meanwhile, the Australian dollar has edged lower to 75.26 US cents at 1700 AEDT, compared to 75.74 US cents on Thursday.
ON THE ASX:
* At 1615 AEDT, the benchmark S&P/ASX200 was up 42.5 points, or 0.75 per cent, to 5,714 points.
* The broader All Ordinaries index was up 39.6 points, or 0.69 per cent, at 5,765.6 points.
* The March SPI200 futures contract was up 10 points at 5,661 points, with 23,402 contracts traded.
* National turnover was 2.8 billion securities traded, worth $4.9 billion.
CURRENCY SNAPSHOT AT 1700 AEDT:
One Australian dollar buys:
* 75.26 US cents, down from 75.74 on Thursday
* 86.58 Japanese yen, from 85.83
* 70.54 euro cents, from 70.42 cents
* 59.97 British pence, from 59.83 pence
* 103.82 New Zealand cents, from 103.94 NZ cents
GOLD:
The spot price of gold in Sydney at 1700 AEDT was $US1,183.20 per fine ounce, down 15.09 US cents from $US1,198.29 on Thursday.
BOND SNAPSHOT AT 1630 AEDT:
* CGS 5.25 per cent March 2019, 1.190pct, from 1.838pct
* CGS 4.25pct April 2026, 2.7159pct, from 2.6707pct
SYDNEY FUTURES EXCHANGE PRICES:
* March 2017 10-year bond futures contract at 97.19 (implying a yield of 2.81pct), from 97.240 (2.760pct) on Wednesday
* March 2017 3-year bond futures contract at 98.00 (2pct), from 98.010 (1.990pct)
(*Currency closes taken at 1700 AEDT previous local session, bond market closes taken at 1630 AEDT previous local session)
