Australian shares returned to the black on Friday after two days of falls as investors adopted a cautious "buy on dips" strategy with broad-based gains across all sectors as the month came to a close. Banks led Friday's rally with the S&P/ASX 200 index hitting a three week high, rising to 5,803.0 points in early deals. By 0219 GMT, the benchmark was up 66.8 points or 1.2 percent to 5,779.9. It fell 0.2 percent on Thursday.
The index is set to post its best weekly performance since March 20. However, analysts are pessimistic about the outlook for the index which has fallen for two consecutive months as the mining boom, which powered the Australian economy for a decade, fades. The index is set for another monthly dip in May. "I think you've got to take today with a pinch of salt, which is a lot of people closing their books. Come Monday it will be a very different picture," Evan Lucas, Market Strategist IG said.
Commonwealth Bank of Australia rose 2.7 percent and National Australia Bank up 2 percent. The mining sector rose with BHP Billiton up 0.9 percent while Rio jumped 1.8 percent. Drug developer Alchemia Ltd slumped 53 percent to a record low of A$0.035 New Zealand's benchmark NZX50 share index rose 47.3 points or 0.8 percent to 5,825.9, tracking gains in offshore markets while healthcare-related shares rallied after Fisher and Paykel Healthcare posted a record-high profit for the year. The medical equipment maker climbed 5.4 percent after it reported a 17 percent jump in full-year profit and lifted its dividend as its annual performance exceeded its guidance.
Comments
Comments are closed.