Local stocks rise after Christmas break

Investors received a late Christmas present with the ASX 200 rising on the first trading session following the holiday break.

The Australian sharemarket ended Friday’s trading session higher on its first day back after the brief Christmas trading break.

The benchmark ASX 200 index closed on Friday up 40.90 points or 0.50 per cent to 8,261.80 points.

While the broader All Ordinaries is up 48.60 points or 0.57 per cent to 8520.10.

The Australian dollar traded lower, down 0.18 per cent to 62.09 US cents.

In a broad market rally, nine of the 11 sectors gained with the exception of technology and utilities stocks.

The ASX 200 grew 0.50 per cent on its first day of trading since Christmas. Picture NCA Newswire/ Gaye Gerard.

The strongest performing share on the ASX was Clarity Pharmaceuticals which is trading 6.25 per cent higher at $4.250.

It was also a strong day for buy now pay later share Zip, up 5.15 per cent to close Friday out at $3.06, as well as Polynovo Limited which grew 3.365 per cent to $2.150.

At the bottom were transport company Kelsian Group, Tab Corp, and embattled tech giant Wistech global, down 2.40, 1.69 and 1.58 per cent respectively.

It was a strong day for Australia’s big four banks, which all traded higher on the bell on Friday.

Westpac was the best performing up 0.71 per cent, to close at $32.66.

Similarly, CBA grew by 0.70 per cent to $156.21, while NAB is trading 0.51 per cent higher to $37.58.

ANZ was the worst performing of the big four, but finished the day in the green up 0.28 per cent, closing the week at $28.82.

Australia’s market followed subdued trading out of Wall Street, where the three major indexes traded flat in the first session after Christmas as jobless figures came in slightly better than expected.

The S&P 500 shed a marginal 2.5 points, the tech-focused Nasdaq dipped 0.1 per cent and the Dow Jones Industrial Average gained 0.1 per cent.

American jobless claims in the week to 21 December dropped slightly to 219,000 from 220,000 the week prior, suggesting resilience in the US economy.

The broad based rally saw nine of the 11 sectors close the day in the green. NewsWire / Max Mason-Hubers

IG market analyst Tony Sycamore said the Australian market overall is set for a strong 2024, with limited trading days left in the year.

“With just three trading sessions left this year (today, Monday the 30th, and Tuesday the 31st), the ASX200 has gained 8.30 per cent in 2024,” he said.

“If dividends are included the index has returned a far more impressive 12.15 per cent. We suspect further gains are likely before the end of 2024, supported by Tuesday night’s rally on Wall Street and in the absence of sell orders during the holiday period.”

Mr Sycamore said the market is starting to factor in a rate cut in early 2025.

“As we look to 2025, the Australian rates market is pricing in a 43 per cent chance of a 25bp cut from the RBA in February, with a first 25 basis-point reduction from the RBA price fully priced for April 2025,” he said.

Originally published as Local stocks rise after Christmas break