Stocks break losing streak

The local market has closed in the black, but suffered its worst week in four months.

The Australian sharemarket has closed higher for the first time in seven sessions on Friday, as investors swept in amid a switch in sentiment globally.

At the 4.15pm (AEST) official market close, the benchmark S&P/ASX 200 index was 16.7 points, or 0.32 per cent, to 5162.7, while the broader All Ordinaries index had lifted 16.6 points, or 0.32 per cent, to 5248.

But over the week, the benchmark had dropped 2.8 per cent — its worst weekly fall in four months.

CMC Markets’ Michael McCarthy said the federal election campaign had likely been a drag on investor confidence this week, with the analyst firm’s election-sentiment measure falling to a fresh low across the campaign’s fifth week.

“This week, investors appeared to react with dismay to pork-barrelling in marginal electorates announced by both major parties,” he said. “Rank political populism rarely plays well with investors, and the weakness in the index suggests this may have dominated market thinking this week.”

On Friday, the big miners and banks led the market higher as bourses across the region bounced off multi-month lows which had most recently been driven by worries about a coming UK vote on European Union membership. The market odds for UK ‘Brexit’ had lengthened overnight after the shock killing of a pro-EU British MP on Thursday.

But EasyMarkets chief strategist Tony Darvall said it was difficult to know what effect the “tragic news” would have in coming days, ahead of the June 23 vote.

“Whether the relief rally in risk can extend to the US sessions and European sessions tonight is up for debate, with the Brexit vote next week likely to put a dampener on any move higher into the weekend,” he said.

The miners’ lift came amid a steady iron ore price and a 0.8 per cent lift in gold prices, while global oil prices had declined up to 3.7 per cent leading into the Aussie session. BHP Billiton added 1.06 per cent to $18.07 while Rio Tinto was 0.95 per cent stronger at $43.42.

But gold miner Newcrest lost 0.53 per cent to $22.42 after a strong run of gains amid the global market volatility.

Materials had added 0.2 per cent while the financial sector jumped 0.7 per cent.

NAB lifted 1.05 per cent to $25.04 while Westpac rose 0.95 per cent to $28.67 as the duo led the bank gains.

In other trading, energy stocks eased 0.2 per cent on the oil price falls. Woodside Petroleum dipped 0.15 per cent to $25.93 while Oil Search fell 0.45 per cent to $6.64. Origin Energy lifted 0.19 per cent to $5.35 after it announced the $72m sale of its Cullerin Range wind farm – part of an $800m divestment program of non-core assets – while Santos jumped 0.94 per cent to $4.29.

The consumer sectors ticked down, with the big two supermarkets were in the red. Woolworths lost 0.47 per cent to $21 while Wesfarmers dipped 0.3 per cent to $39.84.

Meanwhile, Telstra retreated 0.56 per cent to $5.31 while Qantas lifted 2.46 per cent to $2.92.

Elsewhere, shares in Elders surged 12.4 per cent to $4.08 as the agribusiness announced plans to raise $102m to simplify its capital structure with an eye to reinstating dividends. CSR was another big improver, the building products maker jumping 7.29 per cent to $3.68.

The close ended a run of negative sessions for the benchmark, most notably Tuesday’s sharp 2 per cent retreat.

Wall Street had added half a percentage point overnight — snapping a five-session losing streak — as the likelihood of Britain leaving the European Union deteriorated.

Elsewhere, the Australian dollar held in a tight range on Friday of US73.5c to US74c, and was changing hands around US73.7c just prior to the sharemarket close.

Looking ahead, the US has monthly data on housing starts and building permits tonight while the first major economic or equities news slated for release in Australia next week is the minutes from the Reserve Bank’s most recent monetary policy meeting.