The sharemarket remains in positive territory, as the central bank increased its forecasts for economic growth.
The market was up by about one-third of a per cent in early afternoon trade, continuing on from Thursday’s rally.
Late on Friday morning the Reserve Bank of Australia revised its economic growth forecast for the year to December 2014 to between 2.25 per cent and 3.25 per cent, up from 2 per cent to 3 per cent in forecasts issued in November.
Chief market strategist at CMC Michael McCarthy said there was nothing in the RBA’s statement that would disrupt the market.
“There had been a concern that there might be something aggressive in the changes they’re making about the assumptions for the Australian economy,” he said.
“But they haven’t scared the horses.”
The resources sector was driving Friday’s gains, with BHP Billiton up 48 cents at $36.05, Rio Tinto up 17 cents at $65.82 and iron ore miner Fortescue eight cents higher at $5.51.
Aurora Oil and Gas shares soared after it received a $1.8 billion takeover offer from Canada’s Baytex Energy Corp worth $1.8 billion.
Its shares were up $1.46, or 55.7 per cent, at $4.08.
Shares in media group News Corporation were up $1.41, or 8.2 per cent, at $18.61 after it posted a better than expected second quarter profit of $US150 million, despite declining revenues from its Australian newspapers.
Among the banks, National Australia Bank was up five cents at $32.68, ANZ had lost two cents at $29.41, Commonwealth Bank was up eight cents at $73.56, while Westpac was 49 cents higher at $31.32.
KEY FACTS
* At 1225 AEDT on Friday, the benchmark S&P/ASX200 index was up 16.9 points, or 0.33 per cent, at 5,148.3 points.
* The broader All Ordinaries index was up 17.9 points, or 0.35 per cent, at 5,165.3 points.
* The March share price index futures contract was up 13 points at 5,095 points, with 16,307 contracts traded.
* National turnover was 839 million securities worth $1.9 billion.
