Stocks end week 2.6pc stronger

The local market has added more than 1 per cent in today’s session, as it surged into the close.

The Australian sharemarket has rounded off its first positive week in six in fine style, surging into a higher close as the banks and big miners received a strong bid.

At the close, the benchmark S&P/ASX 200 index had jumped 56.8 points, or 1.06 per cent, to 5,431.3, while the broader All Ordinaries index leapt 52.3 points, or 0.96 per cent, to 5,518.6.

Stocks ended near their highs for the session, with the day rounding off a week interrupted by Monday’s outage with four straight gains and a return of around 2.6 per cent.

IG chief market strategist Chris Weston said the Australian stock exchange had “found its mojo” after a period of lagging its offshore peers, with high-yield companies stirring international interest.

“After the poor run it’s no surprise to see the ASX 200 outperforming and despite having an elevated price-to-earnings ratio (which developed market hasn’t?), the index also has the highest yield,” he said.

“International money managers know the ASX 200 is a yield play and with volatility so low and more confidence that the Australian dollar just isn’t going to collapse as many had forecasted Australia, we expect short-term outperformance from the Aussie market.”

For the week, BHP Billton added or 7.2 per cent, or $1.44, to $21.53 as the miner vowed to fight a $1 billion claim by the Australian Taxation Office for taxes owed on Australian iron ore and other minerals sold through its controversial Singapore marketing hub.

Meanwhile Newcrest surged 6.1 per cent, or $1.29, to $22.41 after agreeing to sell its 50 per cent stake in the Hidden Valley joint venture, including the Hidden Valley mine in Papua New Guinea, to its partner Harmony Gold Mining.

Kathmandu grew 4.3 per cent over the week, or 8 cents, to $1.94. The head of the adventure gear retailer said strong profit growth vindicates the decision to reject a multi-million dollar takeover offer made last year when the company’s results were adrift in the wilderness.

Elsewhere, Nufarm turned up 9.3 per cent, or 77 cents, to $9.02 The seeds and pesticide supplier expects to lift earnings in the year ahead despite challenging conditions in agricultural markets and soft commodity prices.

Retailer Oroton put on 3 per cent, or 7, to at $2.40 The handbag and accessories retailer’s annual profit rose 31 per cent to $3.4 million, and said the first seven weeks of its 2016/17 fiscal year had been “encouraging”.

In the telco space, TPG Telecom stumbled 22.8 per cent for the week, or $2.70, to $9.14. The former market overachiever delivered soft underlying earnings and guidance well below market expectations.

And law firm Slater & Gordon lost 1.5 cents, or 3.75 per cent, to 38.5 cents, after this week saying it plans to take legal action against the company that sold it a financially troubled UK insurance business.

with AAP