Australian shares closed at more than 11-year high today as the benchmark index gave its best weekly performance since December 2007 after clearing out the predictions that the shares will end lower due to worries over the state of global growth.
The S&P/ASX 200 Index closed at 6385.60, higher by 0.1% or 3.50 points; weekly gain of 2 per cent. The biggest gainers were the gold stocks that rose 2.2% after ending a four-day long losing streak. With the disappointing Australia’s inflation data, investors’ interest got reignited into the safe-haven metal.
Investors returned optimistic after a long Easter weekend as the sound US earnings elevated the Wall Street to a record high and high oil prices uplifted the local market in the initial two days of trading.
The push in share market was also due to the rise in expectations over Reserve Bank of Australia cutting interest rates in May due to discouraging headline inflation. The major banks gave a favourable response to the news resulting in a lift in their share price.
The shares of the Westpac Banking Corporation (ASX: WBC) rose by 3.4 per cent to $27.74, National Australia Bank (ASX: NAB) advanced 1.6 per cent to $25.67, Commonwealth Bank of Australia (ASX: CBA) increased 2.8 per cent to $75.45, and Australia and New Zealand Banking Corp (ASX: ANZ) closed 2.3 per cent higher at $27.40.
Investors’ interest turned towards the healthcare and technology stocks this week post rate cut anticipation.
|Healthcare Stocks||Growth||Value||Technology Stocks||Growth||Value|
Bellamy's Australia (ASX: BAL) shares advanced 16.8 per cent higher at $10.99 after the company got an approval for a new Bellamy's branded formulation-series to be manufactured at the ViPlus Dairy facility in Toora, Victoria from China's market regulator.
The shares of Wealth manager IOOF Holdings Ltd (ASX: IFL) reduced by 2.6 % after the notices issued to its three units from pension regulator over non-compliance with the licence conditions.
Some of the sectors also demonstrated a fall in share prices including the Communication Services Sector by 0.24%, Consumer Discretionary by 0.67%, Energy by 1.49% and Materials by 0.72%.
Energy stocks witnessed a decline as the oil price fell due to the expectation of OPEC soon raising output to offset the decline in exports from Iran.
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