ASX 200 up 6.3pc for the week

Momentum built through the day, sending the benchmark up 3.46pc, and clocking its best weekly rise since December 2011.

Markets were optimistic to finish the shortened week – surging into a new bull market with its best weekly rise since December. Picture: Jason Edwards

Markets were optimistic to finish the shortened week – surging into a new bull market with its best weekly rise since December 2011 on early signs growth in coronavirus cases was reaching its peak at home and overseas.

After US markets capped their second shortest bear market on record overnight, so too did the S&P/ASX 200 – closing up 22.4 per cent from its recent lows on March 23 – just 13 trading days later.

Momentum built through the day, ultimately sending the benchmark to a 180 point, or 3.46 per cent, gain at 5387.3. That’s a 6.3 per cent gain for the week – helped by Monday’s solid 4.3 per cent jump on a bounce in oil prices.

Meanwhile, the All Ordinaries added 181 points, or 3.43 per cent, to 5439.4.

The Australian dollar was 0.06 per cent stronger against the US dollar, buying US62.34c late on Thursday.

RBC Capital’s head of equities Karen Jorritsma noted that market volatility has subsided markedly, with the VIX index down 20 per cent in the past three weeks.

“As we have seen the rest of this week, volumes are softer and I don’t expect investors to be keen on taking on much risk ahead of the four-day weekend,” she said, pointing out a significant bounce from the March trough.

Still, AMP Capital’s Shane Oliver added it was too early to call a bottom.

“Shares have had a great rally from the lows in March but it’s still too early to say we have seen the bottom given the uncertainty around the coronavirus both in terms of the outbreak’s duration and its economic impact,” he wrote.

“But on a 12-month horizon shares are expected to see good total returns helped by an eventual pick-up in economic activity and policy stimulus.”

Still, with prolonged downward pressure on the horizon for the economy, companies continued to raise capital this week.

On Thursday, childcare provider G8 Education launched a $301m raise, unveiled alongside recognition of its eligibility for a range of government stimulus measures, to shore up its balance sheets. Shares are being offered at 80c apiece and last traded at $1.08 on April 2.

Similarly, Centuria Industrial REIT was halted at $2.76 as it finalises a $130m raise – its shares are being offered from a floor price of $2.54.

Major banks staged a comeback after heavy selling on Wednesday on fear of dividend cuts, though estimates are for bank shareholders to take a $7bn hit as payouts are trimmed.

Commonwealth added 3.3 per cent to $61.76, Westpac jumped by 4.7 per cent to $15.96, NAB shot up by 4.8 per cent to $16.08 while ANZ was the best performer with a 6.6 per cent lift to $16.54.

oOh!media was one of the best performers for the session, surging by 19.7 per cent to 76c after rival media group HT&E lifted its stake in the group to 4.2 per cent, a purchase it described as “opportunistic”.

HT&E shares added a more moderate 2.4 per cent to $1.27.

Elsewhere in the sector, Seven West agreed to a ceasefire with Bauer Media over the sale of its Pacific Magazines business, with the deal completion date now delayed to May 1. Seven shares finished higher by 1.6 per cent to 6.2c.

Nine Entertainment clawed back 4.3 per cent to close at $1.22 as chief Hugh Marks told staff the impact of coronavirus would “fundamentally reshape” the media giant.

To the major miners, and BHP put on 0.6 per cent to $31.50, Rio Tinto edged higher by 0.2 per cent to $89.39 and Fortescue rose by 0.8 per cent to $11.34.

CSL shot up by 5.5 per cent to $329 – now just 4 per cent from its record high – as it said the lockdowns were disrupting its plasma collection, and would likely delay some clinical trials.

Fellow health heavyweight Cochlear lifted by 3.6 per cent to $189.50.

Real estate trusts continued Wednesday’s relief rally, surging by 5.7 per cent after the government’s new code for tenants was less draconian than initially thought.

Mall owner Vicinity Centres added 7.6 per cent to $1.41 as Westfield owner Scentre put on 10.6 per cent to $2.08, Stockland jumped by 9.4 per cent to $3.02 and GPT Group lifted by 3.1 per cent to $4.06.