Close Australian stocks rose for a fifth day, their longest winning run since March, with miners leading the charge as optimism about the prospects for growth pushed global markets higher.
At the close, the benchmark S&P/ASX200 index was up 55.3 points, or 1.2 per cent, at 4800.6, for a weekly rise of 3 per cent, the most in nine weeks. The broader All Ordinaries index rose 55.4 points, or 1.1 per cent, to 4872.9.
Among the sectors, materials rallied 3.4 per cent, gold shares jumped 4.3 per cent, while financials slipped 0.1 per cent.
The dollar soared to yet another record as the greenback weakened against major currencies, but retreated slightly after the Reserve Bank's monetary statement pointed to a temporary halt in rate rises.
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City Index market strategist Michael McCarthy said resources stocks continued to strengthen on the back of investors’ high risk appetite over the past two trading sessions.
‘‘We have much more certainty around the investment environment, going forward,’’ he said. ‘‘We know there will be a stable interest rate environment in the US after a very well and finely pitched (stimulus) package from the FOMC (Federal Open Markets Commmittee of the US Federal Reserve.
‘‘We’ve also seen a US dollar-based buying of all exposure relating to the US dollar, so that’s given metal markets a fillip.’’
Investors were rotating out of defensive stocks and into growth-related, riskier assets, he said.
Rio and BHP soar
Market heavyweights BHP Billiton and Rio Tinto led the share market higher, with Rio Tinto gaining $4.08, or 4.8 per cent, to $87.19, its highest level since September 2008.
BHP Billiton climbed $1.55 or 3.55 per cent to $45.27, its highest level since May 2008.
Oil stocks also made gains, with Oil Search adding 14 cents to $6.82, Santos putting on 23 cents to $13.08 and Woodside Petroleum climbing 86 cents to $45.75.
Major banks produced most of the selling pressure, with ANZ falling 25 cents, or 1 per cent, to $24.09 a day after going ex-dividend.
Commonwealth Bank lost 26 cents to $48.88, National Australia Bank eased 3 cents to $25.97 and Westpac firmed 1 cent to $23.36.
‘‘They’re likely to continue to suffer as there is a rotation away from those banks,’’ Mr McCarthy said. ‘‘I think the political environment is to some extent weighing on them - the concerns that there will now be moves against them.’’
Macquarie Group bucked the trend among major financials, gaining $1.37, or 3.8 per cent, to $37.42 as investors bought into its growth story, Mr McCarthy said.
‘‘As the economy improves and more deals are done, it is perceived that Macquarie will get a greater than fair share of the revenue associated with that,’’ he said.
Newcrest jumps on gold price high
Gold major Newcrest Mining surged $1.88, or 4.6 per cent, to $42.84 helped by the price of gold, which climbed to a fresh record high overnight.
Defensive stocks such as the healthcare sector were relatively flat.
Most retailers put in a lacklustre performance, with department store owner David Jones down 8 cents, or 1.8 per cent, at $4.49. Myer eased 3cents to $3.78 and JB Hi-Fi lost 6 cents to $19.13.
Major media stocks were mixed, with Fairfax Media finishing flat at $1.47. News Corporation dropped 39 cents, or 2.4 per cent, to $16.15, and its non-voting scrip fell 45 cents, or 3 per cent, to $14.45.
Qantas Airways shares lost 3 cents to $2.86 on earnings headwinds including the oil price, Mr McCarthy said.
Further concern over the emergency landing of a Qantas Airbus A380 in Singapore on Thursday would have no effect on the stock, he said.
Biotech company Cellmid was the top traded stock by volume with 131.2 million shares traded for a value of $8.1 million. Cellmid’s stock lost 1.5 cents, or 21.13 per cent, to 5.6 cents.
Preliminary national turnover reached 3.14 billion shares, worth $6.78 billion, with 780 stocks up, 389 down and 384 unchanged.
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BusinessDay, with AAP, Reuters