ASX record high adds $17bn in value

The jump higher cements a 2.8 per cent rise for the week, the market’s best weekly performance for almost a year.

CSL and the major banks gained while November retail sales data surprised to the upside with a 0.9pc rise.

Australian shares soared to record highs in Friday’s trade, continuing strong positive momentum to round out the week with the benchmark’s biggest rise in almost 12 months.

A record-breaking lead from Wall Street helped the S&P/ASX 200 to exceed its previous high at the open, hitting as much as 6933.2 to add $17bn by the close with a gain of 55 points, or 0.8 per cent, to 6929.

The jump higher cements a 2.8 per cent rise for the week, the market’s best weekly performance since the week ending February 8, 2019.

The All Ords joined the rally, surging to as much as 7046 before settling to a gain of 50.5 points or 0.72 per cent at 7041.9 at the close.

Easing of tensions between the US and Iran has been a key driver for the positivity this week, with both parties seemingly toning down their rhetoric in recent days.

“The risk of ... more Iran related volatility remains high, but our base case continues to be that Iran tensions won’t be enough to push oil prices up so far that they threaten global growth and hence the outlook for investment returns this year,” AMP Capital chief economist Shane Oliver said.

A surprise 0.9 per cent jump in November retail sales data provided a minor blip in the rally on Friday, but was short lived as commentators overwhelmingly attributed the rise to unseasonal Black Friday sales.

“Without December retail data yet in hand, today’s report likely represents an incomplete picture given shifting pre-Christmas expenditure patterns and the rise of Black Friday/Cyber-Monday type sales,” RBC macro rates strategist Robert Thompson said.

“This is especially pronounced in non-food discretionary categories. The risk of large reversal in December is high.”

To equities and the gains were broad based, with 64 per cent of top 200 stocks finishing in positive territory.

Healthcare was a standout sector as heavyweight CSL approached a key $300 level, finishing the session higher by 2.8 per cent to $299.30 amid reports of an early start to the North American flu season bringing expectations of a strong demand for its flu vaccines.

ResMed set a record of $23.18, before settling to a 0.7 per cent gain to $23.05, while Cochlear lifted 1.3 per cent to $232.69.

Miners were the only sector to wind back, hit by weakness in iron ore and gold prices.

BHP lost 0.3 per cent to $39.90, Fortescue took a hit of 1.1 per cent to $10.70 after also reassuring investors there would be no production impact from heavy rains at its Pilbara operations. Rio Tinto bucked the weakness with a 0.24 per cent jump to $102.43.

Evolution was one of the worst performers, falling 6 per cent to $3.58 as it trimmed production guidance.

Northern Star slipped by 3 per cent to $11.45, Newcrest lost 1.4 per cent to $30.74 and Resolute lost 9.05 per cent to $1.10.

In the banks, Commonwealth Bank added 1.24 per cent to $82.50, Westpac shares lifted by 0.7 per cent to $24.65, NAB put on 0.4 per cent to $24.93 and ANZ gained 0.9 per cent to $25.12.

The Australian dollar was 0.34 per cent stronger against the US dollar, buying US68.81c late in the afternoon.