Australian sharemarket powers ahead, All Ordinaries Index hits new closing record

The All Ordinaries Index hit a new all-time closing high, while the S&P/ASX 200 nudged its best-ever finish as resources stocks surged.

The Australian sharemarket climbed steadily after an early dip to propel the All Ordinaries Index of the nation’s top 500 companies to a new all-time high.

The S&P/ASX 200 finished 0.51 per cent stronger at 7058.6 – not far from its record closing high of 7162 on February 20 last year before the COVID-19 pandemic savaged markets – while the All Ordinaries Index jumped 1.2 per cent to 7317.5.

That eclipsed the All Ords’ best-ever closing high of 7255, also on February 20 last year.

CommSec analyst Steve Daghlian noted the rally followed the local bourse hitting a 13-and-a-half month high on Thursday “and we’re well into the seventh straight month of gains as well”.

His colleague James Tao said higher commodities prices provided a boost, and the ascent started in earnest after unemployment figures were released.

A second push came later after US futures pointed higher as America’s earnings season kicked off, Mr Tao said.

The labour figures were better than expected, with 70,700 jobs added last month, which beat the forecasts of Commonwealth Bank and most of the 21 economists surveyed by Bloomberg.

The jobless rate falling from 5.8 per cent to 5.6 per cent was slightly better than what the market was anticipating and in line with CBA expectations, Mr Daghlian said.

The fall in the unemployment rate to 5.6 per cent pleased financial markets. Picture: NCA NewsWire/David Geraghty

“All of the job gains were part-time positions, with about 90,000 part-time jobs added, and we also had around 20,000 full-time jobs lost,” he noted.

OpenMarkets Group chief executive Ivan Tchourilov said the market appeared likely to retest all-time highs in coming days.

Standout sectors were energy and materials.

Oil prices surged about 5 per cent overnight on news of a large draw in stocks.

There was also a “truly bullish oil report from the US”, Axi chief global market strategist Stephen Innes said.

“Indeed, this speaks volumes about the US demand recovery and inventories getting siphoned thanks to OPEC+ supply curtailments,” Mr Innes said.

“Risks remain on the omnipresent COVID concerns, but the agencies so far seem constructive on the oil outlook.

“But make no mistake, the world is still dealing with the second variant.”

Beach Energy rose 2.99 per cent to $1.72, Santos appreciated 2.28 per cent to $7.18, Oil Search lifted 1.25 per cent to $4.05 and Woodside Petroleum firmed 0.79 per cent to $24.35.

Woodside held its annual general meeting in Perth, where chairman Richard Goyder said there had been “a lot of unfounded speculation” about the sudden resignation of Peter Coleman as chief executive, with Meg O’Neill to step in as acting chief executive from next week.

Woodside CEO Peter Coleman’s sudden departure has sparked rumours. Picture: Jane Dempster/The Australian.

A Nine report suggested Mr Coleman might have had a falling out with Mr Goyder.

“Some of the reports have, frankly, been news even to me,” the chairman said.

He said the search for Mr Coleman’s replacement was “well progressed”.

“While we have not yet reached the stage of making any offers, we feel confident that we will have a strong outcome,” he said.

Rio Tinto added 2.96 per cent to $117.71, BHP advanced 2.87 per cent to $47.33, Fortescue rallied 3.51 per cent to $20.95, Mineral Resources jumped 3.89 per cent to $45.18 and Nickel Mines Ltd gained 4.82 per cent to $1.30.

Coal producer Whitehaven, however, plummeted 15.45 per cent to $1.56 after downgrading its full-year production, sales and unit cost guidance due to ongoing geological challenges at its Narrabri underground mine in NSW.

The company said Chinese import restrictions had dented prices for Australian 5500CV thermal coal and metallurgical coal, with supply from Russia, Indonesia, Colombia and North America meeting the Asian superpower’s demand.

China continues to snub Australian coal. Picture: STR/AFP

Regis Resources also plunged 15.14 per cent to $2.69 after completing part of its $650m capital raising to help pay for the acquisition of a minority stake in the Tropicana gold mine in WA.

Mr Tchourilov said several stocks exposed to copper, iron ore and lithium were “technically looking very bullish, with Orocobre and Oz Minerals the star performers over the past several months”.

Both should continue to benefit from a global recovery, he said.

Orocobre gained 3.52 per cent to $6.18 while OZ Minerals put on 3.29 per cent to $24.50.

ANZ firmed 0.1 per cent to $28.92, Commonwealth Bank lifted 0.13 per cent to $87.91, National Australia Bank strengthened 0.45 per cent to $26.84 and Westpac advanced 0.67 per cent to $25.50.

The Aussie dollar was fetching 77.2 US cents, 56 British pence and 64.44 Euro cents in afternoon trade.