The Australian share market has finished the session marginally higher, but has gained more than four per cent over the week, led by the big banks and miners.
IG market analyst Angus Nicholson said investors have been encouraged by positive economic data from the United States, headlined by factory orders rising and the service sector index showing continued expansion.
“The financials over there are rallying pretty strongly on expectations that a rate rise might be back in play in the second half of the year,” Mr Nicholson
“That’s certainly benefiting appetite for global banking stocks.”
Mr Nicholson said stability in the oil price and commodities markets had supported strong growth in material stocks.
Mining giant BHP Billiton was 42 cents, or 2.43 per cent, higher at $17.67, after the company said it was committed to maintaining a strong balance sheet despite Moody’s downgrading its credit rating.
Rio Tinto finished the day up 70 cents, or 1.58 per cent, at $44.90, while Fortescue rose nine cents, or 3.75 per cent, to $2.49.
“BHP and Rio are finding strong buying at the moment,” Mr Nicholson said.
“Because of their huge market capitalisation, wherever they move it’s pretty hard for the rest of the materials sector not to follow them.”
The major banks were all higher, with Westpac gaining 48 cents, or 1.54 per cent, to $31.71, Commonwealth Bank was up 83 cents, or 1.11 per cent, to $75.74, National Australia Bank lifted 26 cents, or 0.99 per cent, to $26.63 and ANZ added 22 cents, or 0.89 per cent, to $25.02.
Meanwhile, shares in social media entertainment provider migme were up more than 36 per cent to 79 cents after Chinese mobile app developer Meitu invested almost $7 million in the company.
Mr Nicholson said outside of the financials and resources sectors, the market had a mixed day, with property and utilities stocks struggling.
“The fact that we’ve seen a bit of a bullish rally has reduced investor appetite to hold property and utilities,” he said.
KEY FACTS:
* At the close on Thursday, the benchmark S&P/ASX200 index was 8.9 points, or 0.18 per cent, higher at 5,090.
* The broader All Ordinaries index was up 8.9 points, or 0.17 per cent, at 5,151.1.
* The March share price index futures contract was 2 points higher at 5,079, with 29,451 contracts traded.
* The price of gold in Sydney at 1700 AEDT was $US1,260.77 per fine ounce, up $US21.77 on Thursday’s price of $US1,239.00.
* National turnover was 3.4 billion securities traded, worth $7.1 billion.
