SYDNEY: Australian shares ended lower on Friday, but wrapped up their best week in ten months, as strong company earnings, led by banks, propelled the benchmark toward record territory last touched in October.
The S&P/ASX 200 index slumped 1.4 percent to 8,917.60 on Friday but logged its best week since late-April last year and gained 2.4 percent. The benchmark ended Thursday at 9,105 points, 10 points below its record high of 9,115.20.
Stocks were supported by earnings turning positive after a tough three years “led by the miners and banks with earnings results over the last week,” Shane Oliver, chief economist, head of investment strategy at AMP said in a note.
While financials fell 0.8 percent on the day, the sub-index clocked its best week since mid-March 2022, climbing 5.4 percent, largely helped by strong results from Commonwealth Bank of Australia (CBA) and ANZ Group.
There is profit-taking today after ANZ’s results drove large intraday moves, said Jamie Hannah, deputy head of investments and capital markets at VanEck Australia.
Westpac shares finished 1.2 percent lower, having touched a record high earlier in the day after the bank posted better-than-expected first-quarter profit and projected resilient credit demand.
National Australia Bank, due to report next week, closed 1.1 percent lower, while CBA was down 1.4 percent. ANZ advanced 1.3 percent. Miners weighed on the benchmark index, falling 2.2 percent on the day. The sub-index was up 5.1 percent though through Friday, marking its best weekly performance since late November.
Healthcare stocks slid 4 percent to their lowest level in nearly seven years. Hearing implant maker Cochlear shed 19.2 percent after it reported weaker-than-expected first-half earnings.
The sub-index tumbled 12.6 percent for the week, logging its worst performance since mid-March 2020, dragged down by CSL after the biotech giant flagged disappointing results and the departure of its chief executive earlier in the week.
In New Zealand, the S&P/NZX 50 index fell 2.5 percent to 13,198.18.
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