PERTH: The Australian sharemarket closed higher on Friday as a rally by miners helped the bourse recover some ground following two sessions of steep losses.
At the 4.15pm (AEST) official market close, the benchmark S&P/ASX200 was 24.4 points, or 0.42 per cent, higher at 5,814.4, while the broader All Ordinaries index was up 25.1 points, or 0.43 per cent, at 5,798.8.
Friday’s close still left the market down on a weekly basis, with the benchmark losing 118.9 points, or 2 per cent, over the five sessions.
The index had slumped 158.5 points, or 2.7 per cent, over Wednesday and Thursday after Australian banking stocks were heavily sold off amid uncertainty surrounding the Reserve Bank of Australia interest rate decision next Tuesday.
CMC Markets analyst Michael McCarthy said the market sustained losses over the week after international investors pulled out when the Australian dollar shot up.
The local currency jumped above US80c earlier this week on the back of weak US economic growth data and firming commodity prices.
International investors bought into high-yielding stocks and the big banks when the falling Australian dollar was offering a discount to enter the market, Mr McCarthy said, but sold out when the currency rose too high.
“Now we see the market moving higher when the Australian dollar starts moving down again,” he said.
Reports the RBA will cut at its May board meeting have also set the tone for traders, with the market now pricing in a 60 to 75 per cent chance of lower rates after Tuesday.
