The week that was with Janine Perrett
The end of another bumpy week for markets both home and abroad.
Close The Australian sharemarket ended firmer today, the final day of the month-long corporate profit reporting season, as most financial and resources stocks gave the bourse support.
The benchmark S&P/ASX200 index rose 43.9 points, or 0.9 per cent, at 4637.7 points, while the broader All Ordinaries index added 36.2 points, or 0.8 per cent, at 4651.1.
Some late buying meant the benchmark index managed to chalk up a minimal gain for the week and a rise of 1.3 per cent for the month.
Among the sectors, materials shares rose 1.3 per cent today, financials added 1.2 per cent, while energy shares added 0.3 per cent.
Brokers said investors were upbeat, despite a poor performance by QBE Insurance, and expect a positive start to trading next week.
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Bell Potter senior client adviser Stuart Smith said the February profit season was a bit mixed but overall heading the ‘‘right way’’ and helping confidence.
Investors are now looking for a strong result in December quarter economic growth figures due next Wednesday to back up Reserve Bank comments this week about the boom emerging in the resources sector.
‘‘Counting all these things, I’ve got to think positively,’’ Mr Smith said.
QBE Insurance was one of the losers on Friday, with its shares falling 7 per cent, or $1.60, to $21.40 - its worst closing level since mid-August 2009.
Australia’s largest insurer by market value reported a 6 per cent lift in calendar 2009 net profit but investors were disappointed with its subdued outlook.
ANZ jumped 4 per cent or 89 cents to $23.14 after delivering a solid first quarter trading update that reinforced positive sentiment across the financial sector.
‘‘A significant reduction in (ANZ’s) bad debt provision is confirming a growing trend across the industry and suggests a strong earnings rebound over the remainder of 2010,’’ IG Markets analyst Ben Potter said.
Commonwealth Bank rose 74 cents, or 1.4 per cent, to $53.92, Westpac lifted 44 cents, or 1.7 per cent, to $26.13 and National Australia Bank was up 75 cents, or 3 per cent, to $25.44.
Funds manager and insurer AMP was up 8 cents, or 1.4 per cent, to $5.94.
For earnings results from today and this season, click here
Analysts said the boost to sentiment from rising profits during the Australian reporting season was being undercut by persistent worries over the global economy, which was likely to keep trading choppy over the coming weeks.
"Share markets are caught in a tug of war between worries about stimulus withdrawal, sovereign debt and the sustainability of the global recovery on the one hand, and low interest rates and rising profits on the other," said AMP Capital Investors head of investment strategy Shane Oliver.
In the resources sector, BHP Billiton added 65 cents, or 1.6 per cent, to $41.10 and Rio Tinto put on $1.10, or 1.6 per cent, to $70.50.
Harvey Norman rose 6 cents, or 1.6 per cent, to $3.83 lifting its first half profit by 59.9 per cent.
Meanwhile, Woolworths was $1.39, or 5.5 per cent, stronger at $26.84 after announcing a $400 million on-market share buyback, while Coles owner Wesfarmers dipped 3 cents rose $31.13.
In the energy sector, Woodside Petroleum was 27 cents higher at $43.37 and Santos lost five cents to $12.96.
Gold producers rose with Lihir up 7 cents, or 2.7 per cent, to $2.65 and Newcrest up 59 cents, or 1.9 per cent, to $31.34.
The top-traded stock by volume was telecommunications services company Cape Range, with 219 million shares worth $2.15 million changing hands. The stock was up 0.3 of a cent to one cent.
Preliminary national turnover was 2.68 billion shares worth $7.13 billion, with 479 stocks up, 549 down and 382 unchanged.
For the latest currency movements, click here
For share price information, click here
AAP, with BusinessDay
