Australia’s key benchmark index has spiked above 8,900 points for the first time, making five record resets in five sessions for the local bourse.
The S&P/ASX200 spiked to a fresh high of 9,177.3, before easing to 8,882.6 points by midday, up 8.8 points, or 0.12 per cent, as the broader All Ordinaries gained 11.9 points, or 0.13 per cent, to 9161.
IG Markets analyst Tony Sycamore said it was a feat “unprecedented over the past decade”.
“This week’s gains have followed a rally on Wall Street, the Reserve Bank’s recent 25-basis-point rate cut to 3.6 per cent, and July’s in-line labour force report, reinforcing the RBA’s cautious 2025 rate cut strategy and teasing further cuts ahead, most likely in November and February.”
Friday’s relatively steady start came after a flat US session overnight, after producer price growth in the world’s largest economy weighed on expectations of the timing and magnitude of future interest rate cuts.
“Today we expect the local market to be mostly flat, as traders await earnings calls,” Moomoo market strategist Paco Chow said.
“We’ve got a long way to go in Australian earnings season, but despite some misses, we’re seeing good news.”
Westpac was one such example, leading the big four banks for a second-straight day after it posted a solid boost in quarterly profit on Wednesday and helping financials edge 0.1 per cent higher.
CBA was on track for a third session of losses, down 7.5 per cent to $165.60 since its full-year results raised questions about its lofty valuation.
Seven of 11 local sectors were trading higher, with energy ahead of the pack with a one per cent gain as Ampol surged more than seven per cent after announcing it will buy up EG Group’s Australian service station portfolio for $1.1 billion.
Utilities stocks showed continued strength, up more than four per cent since Thursday, as Origin Energy continued to rally after posting a bumper full-year profit.
The materials sector was back in the green after snapping an eight-session winning streak on Thursday, up 0.6 per cent and tracking with similar gains in iron ore giants BHP, Fortescue and Rio Tinto.
Local gold miners edged higher thanks to an uptick in the greenback against the Aussie dollar, as futures in the precious metal edged 0.5 per cent lower to $US3,383 ($A5,205) an ounce.
So-called “digital gold” Bitcoin tanked almost six per cent after hitting a fresh peak above $US124,000 (A$190,830) on Thursday, and is trading just under US$118,700.
Healthcare stocks slipped 0.5 per cent and were the worst performing sector, as hearing device manufacturer Cochlear slipped 1.6 per cent after its $392 million underlying net profit missed market expectations.
Shares in Mirvac also fell as the property group swung to a statutory net profit of $68 million from a $805 million loss the year before.
The Australian dollar is buying 64.96 US cents, down roughly one per cent since Thursday’s labour force report, which showed the labour market was re-entering a period of gradual softening, Westpac economist Mantas Vanagas said.
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