ASX has record-breaking week

The Australian market rounded out a record week with a near 2 per cent gain on a wave of optimism.

The S&P/ASX 200 had a 1.95 per cent gain for the week and a 5.7 per cent rise year to date. Picture: AAP

The Australian market rounded out a record week with a near 2 per cent gain as a wave of investor optimism continued to lift global markets.

In its fourth consecutive record-breaking session, the benchmark S&P/ASX 200 touched as much as 7088.1 before settling to 7064.10, a gain of 22 points, or 0.32 per cent, at the close.

That’s a 1.95 per cent gain for the week and a 5.7 per cent rise year to date.

Meanwhile, the All Ords lifted by 22 points, or 0.3 per cent, to 7180.3 after a record high of 7205.5.

Local records followed strong US trade, with all three of the major indices lifting to all-time highs following solid earnings and continued trade optimism.

“Global equities continue powering to fresh all-time highs, fuelled by lower interest rates and the Phase One trade deal,” ANZ head of FX Research Daniel Been said.

“It has now been 69 days since a 1 per cent pullback in the S&P 500; and on most traditional multiples, equities look expensive.

“Sentiment is already bullish and positioning looks one-sided, so there is an open question about the sustainability of an already-crowded reflation trade. Some answers may come from the start of the US earnings reporting season, in what is otherwise a relatively light week for economic data.”

Across the rest of the region, China’s Shanghai Composite was falling 0.1 per cent at the local close while the Hang Seng had slipped 0.15 per cent and Japan’s Nikkei had added 0.4 per cent.

The Aussie dollar was holding steady around US68.97c.

To equities, and Materials was the best performing sector, adding 1.2 per cent, led by the heavyweight miners.

Rio Tinto lifted 1.8 per cent to $105.24 as it handed down its quarterly report, with iron ore operations still to return to full capacity.

BHP added 1.2 per cent to $40.60 ahead of its quarterly results to be released on Tuesday while Fortescue jumped by 3.7 per cent to $11.41.

Resolute Mining gained 0.85 per cent to $1.19 after raising its FY20 guidance, tipping production of 500,000 ounces.

Across the rest of the gold space, Evolution lifted 1.3 per cent to $3.90, Newcrest added 0.82 per cent to $31.90 and Northern Star outperformed with a 3.2 per cent to $12.28.

To the banks and Commonwealth Bank slipped 0.5 per cent to $84.05 after hitting a 12-month high of $84.96 early in the session. The bank had its target price trimmed by Morgans as it expected a rise in general insurance claims due to the fires.

Westpac edged higher by 0.3 per cent to $24.98, NAB put on 0.4 per cent to $25.46 and ANZ finished flat at $25.42.

Tech shares followed their US peers higher. Appen gained 4.4 per cent to $26.10 and Altium lifted 0.8 per cent to $38.44 but Afterpay shed 0.1 per cent to $33.22.

Fellow buy now pay later player Sezzle rose by 13.56 per cent to $2.01 as it secured a Californian credit lending licence.

Nufarm took a 10 per cent hit to $5.48 after warning of lower profits from extreme climates across its key markets.

Pilbara Minerals rebounded after weakness earlier in the week. Its shares were the best performer with a 8.6 per cent lift to 38c.