Stocks end week 3.8pc higher

The local market has extended its run of positive sessions to a seventh day.

The Australian sharemarket is enjoying its best run for the year, extending its winning streak to seven sessions on Friday as the big banks and miners drew enthusiastic buying.

It is the longest positive run since a streak of nine days in December.

At the closing bell, the benchmark S&P/ASX 200 index had risen 18 points, or 0.33 per cent, to 5,429.6, while the broader All Ordinaries index climbed 18.3 points, or 0.33 per cent, to 5,510.1.

The session saw the market reach its highest point for 11 months, while it closed at a new 2016 peak for a second day.

Despite the robust showing the benchmark remains 20 per cent below its all-time high, set at 6828.7 in November, 2007.

The week represented a rare case of outperformance by the top 20 stocks this year, with the ASX20 surging 4.5 per cent in the week, against a healthy 3.8 per cent rise in the ASX200.

The biggest gainers were the biggest names, with the major banks rising between 5 per cent (Commonwealth Bank) and 7.5 per cent (ANZ) and the mining behemoths up a similar amount on the week.

It was the same story on Friday as seen through much of the week, with the materials and financials sectors driving the market higher. The risk-on sentiment was clear to see as the defensive sectors of utilities and telcos were the two laggards.

In banking, the big four all gained around half a percentage point at the close.

“The market rally of the past seven sessions has done plenty to boost sentiment in the financial sector after a horrid first six months of the year and plenty of volatility post Brexit and the Federal Election,” Altair Asset Management market analyst Tristan K’Nell said.

“The big financials continue to make solid progress… possibly [due to] some bargain hunting for yield but still a sector to be careful in the short term with uncertainty around earnings, future dividends, capital raisings and the Royal Commission.”

ANZ edged up 0.4 per cent to $24.85, Commonwealth Bank added 0.44 per cent to $75.94, NAB lifted 0.94 per cent to $25.91 and Westpac advanced 1 per cent to $30.11.

Strength in most commodity prices helped Rio Tinto drive 0.7 per cent higher to $50.55 and BHP Billiton inch up 0.15 per cent to $20.37.

Iron ore miner Fortescue bucked the trend to slide 0.24 per cent to $4.23 as ore prices weakened.

In energy, Santos tacked on 0.42 per cent to $4.77, while Woodside lost 0.26 per cent to $26.68 despite higher crude prices.

Gold miner Newcrest tumbled 4.3 per cent to $24.22, ensuring it was the worst performer on the ASX200 this week. The gold miner has enjoyed a great run post-Brexit vote but the risk-on rally has driven profit-taking as safe havens such as gold are no longer as eagerly sought out.

Meanwhile, Telstra ended flat at $5.75, while Qantas rose 2.2 per cent to $3.085.

The Australian dollar ended the local session at US76.25c, holding comfortably above the US76c mark thanks to Chinese growth data edging market expectations.