PERTH: The Australian sharemarket rallied in the afternoon to close higher as buyers stepped in to put an end to the banks’ recent run of losses, but the market still ended the week down.
At the 4.15pm (AEDT) official market close, the benchmark S&P/ASX200 index was up 22 points, or 0.42 per cent, to 5215, while the broader All Ordinaries index lifted 21.8 points, or 0.42 per cent, to 5269.7.
The benchmark finished the week off 0.47 per cent following last week’s 2.1 per cent decline.
IG market analyst Angus Nicholson said banks played a key role in the stronger close, after an uncertain start on mixed overnight leads.
“The banks were a key driver of overall market sentiment. After heavy selling yesterday, the banks looked to be finding buyers today after a pretty negative week and a half which saw the sector lose roughly 4-5 per cent,” he said.
Mr Nicholson said the index was initially hit with “quite a lot” of selling on Wall Street leads, as well as major falls in both oil and iron ore prices.
“Despite that the materials sector has performed reasonably well,” he said, adding that BHP Billiton was sold off on news that a dam had burst at one of its Brazilian mines, causing fatalities.
Elsewhere, ANZ shares traded lower as the bank turned ex-dividend today.
In economic news, the Reserve Bank today released its quarterly economic outlook assessment, with lower forecasts for economic growth and inflation buoying investors’ hopes for another interest rate cut. However, the bank noted the overall outlook had improved in recent months — “evident in a range of indicators”.
