The Australian share market posted gains for a seventh consecutive day on Friday but unlike the rest of the week was led by cyclical mining stocks instead of high yielding banks.
At the close of trade on Friday, the benchmark S&P/ASX200 index was up 42 points, or 0.94 per cent, at 4,494.4, while the broader All Ordinaries index had risen 41.2 points, or 0.92 per cent, to 4,513.8.
On the ASX 24, the December share price index futures contract was 32 points higher at 4,492 with 25,651 contracts traded.
The S&P/ASX200 index hit a 14-month record high on Wednesday and extended those gains in the following two days, to be up 2.5 per cent for the week.
However, the earlier part of the week saw investors react to Tuesday’s interest rate cut by putting money in high yielding financial stocks, while on Friday they responded to high commodity prices by embracing resources stocks, which rose nearly two per cent.
Oil prices rose while gold prices offshore hit nine-month highs of $US1,796.50 per ounce overnight, auguring well for global growth and boosting resources stocks.
The market had also taken solace from a 0.6 per cent rise on the US’s Dow Jones index, a successful Spanish bond auctions and the European Central Bank reiterating plans to buy sovereign bonds as needed, CMC Markets senior trader Tim Waterer told AAP.
“The stockmarket ended the week with some gusto and the materials sector has really been the prime driver of index performance today,” CMC Markets senior trader Tim Waterer told AAP.
“The reason our market outperformed the US in percentage terms was because of the concentration of materials stocks in our index.”
Rio was a stand-out, gaining 95 cents, or 1.76 per cent, to $54.90.
BHP Billiton was up 33 cents, or one per cent, at $33.32 and iron ore miner Fortescue Metals continued its volatile trading lifting 16 cents, or 4.6 per cent, to $3.61.
Gold stocks were the best performers, led by Newcrest Mining climbing 88 cents, or 3.12 per cent, to close the week at $29.12.
In local news, Echo Entertainment shares rose after a failed attempt by RBS to buy 40 million shares, amid expectations that James Packer’s Crown Ltd will soon make a takeover bid.
Echo equities closed 13 cents up, or 3.4 per cent, at $3.98.
Woolworths said it would spin off its shopping centre assets into a new property trust, and tap investors for up to $506 million to help fund the deal.
Woolworths was up 38 cents to to $29.63.
Bank of Queensland said it expects to post a loss for the full year, despite a profitable second half.
The stock was down 41 cents, or 5.15 per cent, at $7.55.
ANZ was up 20 cents to $25.50, Commonwealth Bank was 30 cents higher at $56.85, National Australia Bank gained 16 cents to $26.31 and Westpac was up 31 cents to $25.88.
National turnover was 1.7 billion securities worth $3.42 billion, with 604 stocks up, 340 down and 365 unchanged.
