The Australian share market has suffered its longest weekly dropping streak for the reason that world monetary disaster, in addition to its greatest weekly drop in almost six months, however has at the least managed to claw again a little bit of these losses.
The benchmark S&P/ASX200 index completed near the highs of the day on Friday, up 29.3 factors, or 0.42 per cent, to six,994.8, whereas the broader All Ordinaries gained 35.6 factors, or 0.5 per cent, to 7,188.3.
For the week the ASX200 was down 2.6 per cent, its worst weekly loss for the reason that week ending September 23. The week was additionally its sixth consecutive week of losses, its longest weekly dropping streak since a nine-week stretch in mid-2008 throughout the GFC.
“What a crazy week, honestly – and today has certainly been something of an anti-climax,” stated IG Markets analyst Tony Sycamore.
He advised AAP that he actually wouldn’t have anticipated on Thursday that the European Central Bank would ship a 50 foundation level price hike – because it did in a single day – and that world markets would end increased.
But Mr Sycamore famous the positive aspects got here after the bailout late Thursday of Credit Suisse by Switzerland’s central financial institution, in addition to the in a single day rescue of First Republic Bank by 11 Wall Street giants, who gave the mid-sized US financial institution a $US30 billion money infusion on the behest of Treasury Secretary Janet Yellen.
“We only have runs on banks if people are worried about there not being enough money to withdraw,” Mr Sycamore stated.
“What this does is it obviously shores up a lot of that confidence that was potentially still leaking through the cracks, and I think has gone a long way to stemming that fear, but we still need to get through the weekend… (traders) want to make sure there’s no more aftershocks that will ripple through the banking system.
“It’s nearly like we have had an enormous get together, and there is a little bit of a hangover going via. And we’re ready to see what occurs subsequent week, and what the FOMC assembly will convey,” Mr Sycamore said, referring to the Federal Reserve’s Federal Open Market Committee.
The US central bank will announce its latest decision on rate hikes at 5am on Thursday, Sydney time, with Mr Sycamore predicting that despite this week’s turmoil the Fed would stay the course and deliver another 25 basis point rate hike. A sudden pause would lead to people wondering, “hey, is there one thing else beneath the carpet, so to talk,” he said.
Eight of the ASX’s 11 sectors finished higher, with energy the biggest gainer, rising 2.3 per cent. Woodside gained 2.7 per cent and Santos added 1.6 per cent as Brent crude prices rose back above $US75 a barrel.
Property was the biggest loser, dropping 1.5 per cent with losses across the entire interest-rate-sensitive sector. Westfield owner Scentre Group fell 2.1 per cent, warehouse owner Goodman Group subtracted 1.3 per cent and diversified property trust GPT Group retreated 3.3 per cent.
The big banks all recouped some of this week’s losses, with CBA up 1.2 per cent to $96.45, NAB climbing 1.7 per cent to $28.28, Westpac adding 0.2 per cent to $21.24 and ANZ advancing 0.4 per cent to $22.81.
The heavyweight mining sector gained 0.4 per cent, with BHP flat at $43.39, Fortescue Metals up 1.8 per cent to $21.42 and Rio Tinto edging 0.1 per cent higher at $114.80.
Goldminers mostly lost ground as the price of the safe haven metal slid a bit from its six-week high of $US1,932 an ounce. Newcrest dropped 2.2 per cent and Northern Star fell 2.3 per cent.
But Kingsgate Consolidated soared 13.3 per cent to $1.71 after announcing that the Thai government had approved the reopening of its Chatree goldmine, six years after it was closed by the ruling junta.
Elsewhere, Neuren Pharmaceuticals gained 6.5 per cent to an all-time high of $13.23, having soared 72.5 per cent this week following a drug approval in the United States.
The Australian dollar was at close to a 10-day high against its US counterpart, buying 67.14 US cents, from 66.38 US cents at Thursday’s ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Friday up 29.3 points, or 0.42 per cent, at 6,994.8.
* The broader All Ordinaries 35.6 points, or 0.5 per cent, to 7,188.3.
CURRENCY SNAPSHOT:
One Australian greenback buys:
* 66.39 US cents, from 66.39 US cents at Thursday’s ASX close
* 89.22 Japanese yen, from 88.20 Japanese yen
* 62.99 Euro cents, from 62.60 Euro cents
* 55.18 British pence, from 54.99 pence
* 107.50 NZ cents, from 107.69 NZ cents
Source: www.perthnow.com.au
