The Australian sharemarket ended the week in the green, with experts saying “bullish sentiment” is rising, while central banks have provided certainty.
The benchmark S&P/ASX200 index closed 0.39 per cent higher at 7456.9, while the All Ordinaries Index gained 0.4 per cent to 7777.2.
OMG chief executive Ivan Tchourilov said it had been a strong start to the first week of November.
“Bullish sentiment is continuing to seep into the market, following on from the record-breaking performance in the US,” he said.
CommSec analyst Tom Piotrowski said the local bourse confidently rose, sustaining a positive start to trade for much of the day, with most sectors gaining ground but some energy stocks softened.
“That’s probably a little bit unusual given the fact that while energy prices did fall in northern hemisphere trade overnight, in after hours trade, we’ve seen a recovery for oil prices,” he said.
Woodside lost 1.78 per cent to $22.58, Beach Energy slid 0.78 per cent to $1.28 and Santos inched one cent lower to $6.83, but Origin put on 1.8 per cent to $5.06 and Oil Search edged two cents higher to $4.23.
Softer oil prices came despite OPEC+ refusing to increase its production targets, Mr Tchourilov said.
“The US has stocked up a strategic reserve to fight off any price spikes down the road,” he added.
Shareholder registry company Link Administration Holdings rallied 8.55 per cent to $4.70 after US private equity firm Carlyle Group lobbed a fresh takeover offer with a “lookthrough” valuation of $5.38 per share, which the board said it would consider.
Link is suspending its on-market share buyback while it does so.
The publisher of this title, News Corp, surged 6.94 per cent to $33.90 after delivering its first quarter results, showing an 18 per cent jump in revenues and a hefty 53 per cent spike in profitability, with real estate services, Dow Jones and HarperCollins standouts.
“News media was an especially notable contributor to profitability this quarter, thanks to significant digital advertising growth and our groundbreaking agreements with Google and Facebook,” chief executive Robert Thomson said.
News Corp majority-owned REA Group, which runs realestate.com.au, leapt 5.58 per cent to $176.81.
Among the major miners, Rio Tinto added 0.56 per cent to $88.81, BHP appreciated 0.17 per cent to $36.09 and Fortescue lifted 0.64 per cent to $14.27.
“The fundamental picture around iron ore and steel remains quite challenged in the medium term – there’s plenty of evidence of steel demand being subdued where China is concerned,” Mr Piotrowski said.
Bryah Resources rocketed 12.73 per cent to 6.2 cents after announcing it had acquired a new exploration target, the Lake Johnston lithium-nickel project in Western Australia, adding to its copper, gold and manganese assets.
“The tenements Bryah will be exploring shortly are within a region which has been proven to be highly prospective for lithium as well as nickel and copper – all vital commodities in the electric vehicle/energy storage revolution,” managing director Neil Marston said.
Other strong performers were Talga Group, which is focused on battery anode and graphene additive products, soaring 13.39 per cent to $1.90, and tin and lithium explorer AVZ Minerals, which jumped 13.98 per cent to 53 cents.
ANZ firmed 0.28 per cent to $28.80, Commonwealth Bank rose 1.12 per cent to $109.71, National Australia Bank appreciated 0.8 per cent to $28.93 but Westpac declined 2.8 per cent to $22.55.
Bank of Queensland shed 0.9 per cent to $8.70 while Bendigo and Adelaide Bank retreated 0.74 per cent to $9.35, giving up Thursday’s “outsized” improvements, Mr Piotrowski said.
It had been a big week for interest rate news from major central banks, providing a lot more certainty about where they were positioned, he added.
AMP Capital senior economist Diana Mousina noted that in the past few weeks, financial markets had been pricing in aggressive rate hikes from the major central banks over the next year because inflation data had been surprising on the upside.
“However, this week numerous central banks banded together and pushed back against market pricing, which led to a fall in government bond yields,” she said.
“Sharemarkets benefited from lower odds of near-term rate hikes because this means that monetary settings will remain accommodative, which is positive for earnings growth and economic activity.”
The Reserve Bank of Australia issued its Statement on Monetary Policy on Friday, aggressively lifting its inflation forecasts.
“Three months ago, the Reserve Bank wasn’t projecting underlying inflation at 2 per cent until mid-2023,” CommSec chief economist Craig James said.
“Now underlying inflation is seen at 2.25 per cent through 2022.
“The Reserve Bank says, ‘This inflation profile reflects a stronger outlook for housing cost inflation in coming quarters and a steady pick-up in wages growth further out.’”
The Aussie dollar was fetching 73.97 US cents, 54.79 British pence and 63.98 Euro cents in afternoon trade.