Australian shares boosted by best weekly gains of year

The ASX200 climbed 0.5 per cent on Friday to finish the week up 2.1 per cent, its best weekly performance since mid-December.

The local share market has climbed for a fifth time out of the past six sessions to post its best weekly gains for the year.

The S&P/ASX200 on Friday accelerated its gains in the afternoon to finish up 38.2 points, or 0.49 per cent, to 7,860.0, its highest close since May 20.

For the week, the benchmark index rose 2.05 per cent, its highest weekly gains since a 3.44 per cent rise in the five-day period ending December 15.

The broader All Ordinaries on Friday finished up 38.5 points, or 0.48 per cent, at 8,112.8.

AMP chief economist Shane Oliver said the Australian market had been boosted by a positive lead from the US, as well as weaker domestic economic growth boosting confidence in the prospect of the Reserve Bank of Australia cutting interest rates.

“While shares rebounded over the last week, the ride is likely to remain volatile and constrained,” Dr Oliver cautioned. 

“The risks of a deeper correction beyond that seen in April are high.”

A key catalyst for further gains or losses could come as soon as Friday night, with the release of another set of important jobs figures from the US. 

A weaker-than-expected readout would likely boost expectations for quicker rate cuts and lead to further share market gains, while a strong print might do the opposite.

“The bar is now set incredibly high in terms of a rate cut optimism ahead of tonight’s non-farm payroll data,” wrote IG market analyst Tony Sycamore.

Ten of the ASX’s 11 sectors finished higher on Friday, all except tech, which was down marginally.

Consumer discretionaries were the biggest mover, rising 1.2 per cent as Aristocrat Leisure added 1.9 per cent and Domino’s Pizza Enterprises climbed 2.3 per cent.

The gold sub-sector also did well as the price of the precious metal traded near a two-week high of $US2,375 an ounce amid increased expectations for rate cuts.

Newmont added 2.9 per cent, Resolute Mining climbed 7.3 per cent and West Africa Resources advanced 2.0 per cent.

Elsewhere in the mining sector, BHP grew 1.1 per cent to $44.53, Fortescue added 1.3 per cent to $24.37 and Rio Tinto rose 0.6 per per cent to $125.31.

After morning losses the Big Four banks mostly finished the day higher, with CBA up 0.6 per cent to an all-time closing high of $125.55, ANZ rising 0.4 per cent to $29.18 and NAB advancing 0.7 per cent to $35.23. Westpac was the outlier, flat at $26.97.

In the tech sector, Life360 dropped 6.1 per cent to $13.80 as shares in the US location-tracking company began trading on the Nasdaq as part of a secondary listing. 

In small caps, LTR Pharma soared 25.9 per cent to an all-time high of 80.5c after the company announced “extremely positive” initial results from a clinical trial of its nasal spray designed to treat erectile dysfunction. 

Men who took LTR’s nasal spray got results in an average of just 12 minutes, compared to an average of 56.4 minutes for men who took a pill, LTR said.

The Australian dollar was buying 66.72 US cents, from 66.60 US cents at Thursday’s ASX close.

ON THE ASX:

* The benchmark S&P/ASX200 index on Friday gained 38.2 points, or 0.49 per cent, to 7,860.

*The broader All Ordinaries rose 38.5 points, or 0.48 per cent, to 8,112.8.

CURRENCY SNAPSHOT:

One Australian dollar buys:

* 66.72 US cents, from 66.60 US cents at Thursday’s ASX close

* 103.70 Japanese yen, from 103.77 Japanese yen

* 61.26 Euro cents, from 61.20 euro cents

* 52.18 British pence, from 52.07 pence

* 107.70 NZ cents, from 107.55 NZ cents