The share market has posted its biggest weekly gain in almost a year after the European Central Bank unveiled a multi-billion euro stimulus package.
The ECB’s anticipated decision to buy 60 billion euros ($A85 billion) worth of private and public sector bonds a month, between this March and September 2016, helped the local share market climb by 1.5 per cent on Friday.
The measures to boost the flagging European economy also saw the Australian market finish the week up 3.8 per cent, marking the strongest weekly gains since February last year.
Energy stocks were the biggest winners, rising by more than three per cent on average.
Investors are excited about European money filtering through the global economy, City Index senior market analyst Kara Ordway said.
“When there’s that significant amount of money pumped into an economy, it’s always going to have a knock-on effect globally,” she said.
“Europe is so big, it has so many connections with the global market.”
Diversified mining giant BHP Billiton was up 53 cents, or 1.84 per cent, at $29.38, Rio Tinto had gained 36 cents to $56.86 but iron ore producer Fortescue Metals was four cents weaker at $2.13.
Iron ore miner and steelmaker Arrium, formerly known as OneSteel, was down two cents, or 8.9 per cent, at 20.5 cents as it decided to close one of its two South Australian mining precincts in response to falling iron ore prices, a move that will deliver a $1.3 billion hit to its bottom line.
Oil and gas producer Santos had surged 38 cents, or 5.1 per cent, to $7.80 after lifting sales revenue and production during the December quarter, despite a sharp slide in oil prices.
Among the banks, Commonwealth Bank was up $1 at $86.23, Westpac had lifted 46 cents to $34.32, National Australia Bank was 44 cents higher at $34.77 and ANZ had picked up 43 cents to $32.20.
Sleep disorder specialist ResMed was up 42 cents, or 5.7 per cent, at $7.80 after its half year profit rose in the wake of new product launches.
But The Reject Shop fell two cents to $5.99 after flagging a 25 per cent drop in first half profit.
Wesfarmers lost 45 cents, or more than one per cent, to $43.15 after former Coles boss Ian McLeod quit his post as commercial director to accept a lucrative post in the US.
KEY FACTS
* At the close on Friday, the benchmark S&P/ASX200 index was up 81.9 points, or 1.51 per cent, at 5,501.8 points.
* The broader All Ordinaries index was up 77.7 points, or 1.44 per cent, at 5,468.2 points.
* The March share price index futures contract was 81 points higher at 5,444 points, with 23,043 contracts traded.
* National turnover was 1.3 billion securities worth $4 billion.
