The share market has closed higher as the big miners rebounded from recent falls and ANZ’s record profit helped the banks.
That capped another week of gains for local shares, the third straight week of price rises.
ANZ’s annual cash profit grew 10 per cent to $7.1 billion, with growth from all of its divisions, and Westpac is also expected to announce a rise in profit on Monday.
“Investors probably just are relieved that the results so far have not revealed any major problems that they weren’t previously aware of,” CMC Markets chief analyst Ric Spooner said.
ANZ gained 24 cents to $33.50, National Australia Bank added 35 cents to $34.99, Commonwealth Bank lifted 31 cents to $80.48 and Westpac was 32 cents higher at $34.78.
Macquarie Group also posted a strong gain, adding $1.32, or 2.2 per cent, to $61.17 after a 35 per cent rise in its half year profit.
Mr Spooner said the US Federal Reserve’s decision to end stimulus had also boosted risk sentiment, and pushed the gold price below $US1,200 per fine ounce.
“History shows that the early stages of central bank tightening cycles are usually good times for the stock markets,” he said.
In the resources sector, BHP Billiton added 41 cents to $33.96, Rio Tinto gained $1.11 to $60.41 and Fortescue Metals was six cents higher at $3.50.
But gold miner Newcrest dropped 44 cents, or 4.5 per cent, to $9.32 after the gold price fall.
KEY FACTS
* At 1615 AEDT on Friday, the benchmark S&P/ASX200 index was up 50.4 points, or 0.92 per cent, at 5,526.2 points.
* The broader All Ordinaries index was up 47.9 points, or 0.88 per cent, at 5,505 points.
* The December share price index futures contract was up 49 points at 5,507 points, with 31,705 contracts traded.
* National turnover was 1.8 billion securities worth $6.2 billion.
