The Australian share market is higher as investors buy into the banks.
Positive momentum has grown on increased expectations of a local interest rate cut next month, after Westpac this week announced a $3.5 billion capital raising and a 0.20 percentage point n increase in home loan rates.
IG market analyst Angus Nicholson said the market had opened strongly off the back of a strong performance in the US overnight.
“That was taken quiet positively and the good performance of US equity markets was one of the driving factors on the ASX,” Mr Nicholson said.
He said demand for banking stocks increased on Friday as investors welcomed Westpac’s decision.
“We’re seeing all of the other banks performing strongly,” he said.
Shares in National Australia Bank rose 25 cents to $31.17, Commonwealth Bank added $1.15 to $76.55 and ANZ was 11 cents dearer at $28.67, while Westpac remains in a trading halt as it carries out a capital raising.
Rio Tinto shares fell 56 cents to $53.69 despite a solid production report, as a drop in iron ore prices overnight weighed on sentiment.
Santos shares rose 20 cents to $5.54 after the energy giant announced it has shipped its first cargo from Queensland’s GLNG project.
KEY FACTS
* At the close on Friday, the benchmark S&P/ASX200 index was 38.2 points, or 0.73 per cent, higher at 5,268.2.
* The broader All Ordinaries index was up 38.0 points, or 0.72 per cent, at 5,303.6.
* The December share price index futures contract was 47 points higher at 5,255, with 26,683 contracts traded.
* National turnover was 2.1 billion securities worth $5.2 billion.
