A flat start is expected to trading on the ASX today after last week locally where the Australian market outperformed the world.
Eurozone shares rose 0.2% on Friday and the US S&P 500 added 0.5% helped by good earnings reports.
ASX 200 futures fell 2 points by the close on Saturday morning pointing to a weak start for the Australian share market this morning.
The ASX 200 Index closed the shortened trading week on Friday 125.8 points, or 2.01%, higher at 6,385.6 while the All Ordinaries added 123.3 points, or 1.9%, to 6,473.2.
That rise topped other markets – the US was up 1.2% (for the S&P 500), Japanese shares rose 0.3% but Eurozone shares fell 0.2% and Chinese shares fell 5.6% on talk of less stimulus spending by the government.
In fact, the ASX 200 topped the level it last achieved in December 2007 – a very slow rebound given that other major markets have bounced further and faster from their GFC lows.
The ASX 200 still hasn’t topped its previous all-time high hit in October 2007.
As usual, the major banks lead the market advance in the wake of the very weak inflation reading for the March quarter which has sparked new estimates for a rate cut sooner than later from the Reserve Bank.
Commonwealth Bank shares rose 2.8% to $75.45, Westpac shares were up 3.4% to $27.74, ANZ climbed 2.3% to $27.40 and NAB closed 1.6% higher at $25.67.
The ANZ and NAB report their 2018-19 interims this week (see separate story).
Infrastructure and real estate stocks did well – Goodman Group rose 7% to $13.60 while Transurban securities were up 4.1% to $13.73.
Healthcare stocks had a positive week with CSL shares climbing 3.4% to $196.98, Sonic Healthcare rising 5.5% to $25.75, ResMed advanced 7.1% to $14.57 (ahead of its third-quarter results on Friday morning, our time), and Mayne Pharma added 5.3% to 69.5¢.
Local tech stocks were higher on the back of solid figures from Facebook and Amazon. Wisetech Global rose 6.8% to $22.73, Appen added 5.2% to $24.98, Afterpay Touch shares rose 4.4% to $23.82, Altium added 4.9% to $33.89 and Xero climbed 5.1% to $53.95.
Bellamy’s Australia shares closed the week 16.8% higher at $10.99 after it received approval from China’s market regulator, the State Administration for Market Regulation, for a new Bellamy’s branded formulation-series to be produced at the ViPlus Dairy facility in Toora, Victoria. A2 Milk also added 6.1% to end at a record close of $15.55.
Flight Centre shares fell 10.6% to $39.000 after it cut its 2018-19 guidance blaming a weaker-than-expected performance in the Australian leisure market.
That’s another area of discretionary spending that is weak and a further sign of the retrenchment in spending and confidence among local consumers.
