The Australian share market has closed at a three-week high after enjoying its best performance all week, but for the fourth time in five days has been unable to crack a key resistance level.
The benchmark S&P/ASX 200 index finished up 76.8 points, or 1.08 per cent, to 7,182.7, but retreated for the fourth time this week after making an early run at 7,200. The All Ordinaries gained 73.8 points to 7,413.1.
For the week the ASX200 was up 0.52 per cent to its highest level since May 5.
“The market’s closed up for the week, which is quite refreshing, but we don’t think it’s going to continue,” said Saxo Capital Markets Australian market analyst Jessica Amir.
“The fundamentals are the same – (interest) rates are rising, QT (quantitative tightening) is starting, we know the biggest companies in the world are guiding for higher costs.
“That means higher inflation, wages, higher fuel costs … the long term position remains the same. It’s still very bearish,” Ms Amir told AAP.
“We think we’ll probably see a worse capitulation than the dot-com crash. It could potentially be like the crashes that occurred in the ’70s.”
But for now, at least, the market was buoyant. Every sector was up except for consumer staples, which was flat.
The energy sector was the top performer, rising 2.3 per cent as Brent crude prices lingered near a two-month high. Woodside climbed 3.6 per cent, Beach gained 3.8 per cent and Geelong refinery owner Viva Energy Group climbed 2.5 per cent to a fresh all-time high of $2.92.
Consumer discretionary shares rose two per cent, bouncing back from four days of losses, with sentiment boosted by strong retail trade figures for April. Wesfarmers was up 1.6 per cent, JB HiFi climbed 2.5 per cent and battered betting company Pointsbet soared 16.4 per cent
The tech sector rose 1.2 per cent but Appen gave back most of Thursday’s gains after Canadian tech conglomerate Telus International revoked its tentative $1.2 billion takeover offer without stating a reason.
Appen closed down 20.9 per cent to $6.54, down 41 per cent since the start of the year.
“No reprieve for long-term shareholders in Appen, the co-creator of Siri,” Ms Amir said.
Elsewhere in the sector, Afterpay owner Block rose 5.9 per cent and Dubber added 7.1 per cent.
The heavyweight mining sector was up 1.5 per cent as Rio Tinto predicted the iron ore prices would rebound with China determined to meet its growth targets. BHP advanced 2.5 per cent to $43.67, Rio Tinto was up 2.4 per cent to $113.39 but Fortescue fell 1.7 per cent to $19.59.
Goldminers Evolution and Northern Star were both down by a little less than one per cent but Newcrest added 0.4 per cent.
All the big banks were up with CBA rising 1.1 per cent to $106.63, Westpac advancing 0.8 per cent to $24.09, ANZ up 0.6 per cent to $25.68 and NAB adding 0.4 per cent to $31.68.
The Australian dollar was buying 71.35 US cents, from 70.74 cents at Thursday’s close.
ON THE ASX:
The benchmark S&P/ASX200 index finished Friday up 76.8 points, or 1.1 per cent, to 7,182.7.
The All Ordinaries index closed up 73.8 points, or 1.01 per cent, to 7,413.1.
CURRENCY SNAPSHOT:
One Australian dollar buys:
71.35 US cents, from 70.74 US cents when the ASX closed on Thursday.
90.74 Japanese yen, from 89.97 yen.
66.41 Euro cents, from 66.34 cents.
56.52 British pence, from 56.30 pence.
109.65 NZ cents, from 109.50 NZ cents.
