ASX finishes the week higher as bank shares improve
Australia’s sharemarket has stumbled at the finish line but has closed the week higher as a rebound in recently neglected bank stocks continues.
The S&P/ASX200 rose 1.3 per cent for the week after rising 16.3 points on Friday, or 0.2 per cent, to 8908.1, while the broader All Ordinaries gained 12.8 points, or 0.14 per cent, to 9025.4.
The ASX200 closed in the green on Friday, and higher over the week.GettyThe heavyweight financials sector provided much of the momentum, as investors sought safety in Australia’s banks after US tech earnings raised questions about artificial intelligence’s projected returns.
“Wall Street turned decidedly sour as investors penalised tech heavyweights for aggressive spending and elusive pay-offs,” Moomoo chief market strategist Tapas Strickland said.
The mining sector, a large part of the local market, had a mixed day. BHP edged up 0.1 per cent, while Fortescue slid 2.2. Mining giant Rio Tinto slumped 1.6 per cent after an incident at its Oyu Tolgoi copper mine in Mongolia. A rockfall triggered by a seismic event on Thursday caused three workers to be injured, the company said in a statement on Friday.
Most of the major banks advanced as Commonwealth Bank gained 0.2 per cent, National Australia Bank gained 0.4 per cent, and ANZ Bank closed 0.2 per cent higher. Westpac, which is due to deliver its full-year results on Monday, slipped 1.1 per cent.
Shares in supermarket giant Coles plunged 7.7 per cent after the company’s first quarter sales result revealed that growth had slowed in October, and it highlighted customers were shopping around for value. It also said high fuel costs would add to its expenses, and it expected first-half supermarket profits to be flat compared with the prior period.
Energy stocks advanced after oil prices rose on signs the US might resume military strikes against Iran, risking fresh turbulence in the region that might affect energy flows.
West Texas Intermediate rose towards $US103 a barrel, after swinging more than $US3 in the previous session, while Brent settled near $US115. A top commander briefed US President Donald Trump on military options on Thursday, The Wall Street Journal reported. Trump has repeatedly given signals he might restart airstrikes against Tehran after midterm elections next week. Woodside Energy rose 1.8 per cent and Santos added 1.3 per cent while, among the refiners, Ampol was flat and Viva Energy rose 1.1 per cent.
Technology stocks were mixed, as WiseTech rose 0.5 per cent, Xero lost 2.4 per cent, Technology One fell 1.4 per cent and Codan rose 1 per cent. Data centre operator NEXTDC lost 4.9 per cent.
The Australian dollar was trading at US70.28¢ on Friday afternoon.
Overnight, the historic drop for Alphabet’s stock dragged the US market lower after the company behind Google and YouTube reported weaker growth for the summer than analysts expected. The report underscored worries about whether all its huge investments in artificial-intelligence technology would pay off.
The S&P 500 fell 0.3 per cent for its first loss in four days, even though the wide majority of stocks rose within the index and across Wall Street. The Nasdaq composite tumbled 1.4 per cent, while the Dow Jones Industrial Average dropped 132 points, or 0.3 per cent.
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