While the positive global lead and a reasonable start to the June half profit reporting season saw Australian shares rise by 2.5% last week, today’s trading is expected to be on the low side due to a weak futures lead on Friday night.
On Friday, the ASX 200 Index jumped 105.6 points, or 1.3%, to end at 7,971.1, with all 11 sectors advancing—even miners.
The index’s 2.5% weekly gain was its best since last December.
Gains led by the big banks lifted the wider market, particularly after the Commonwealth Bank’s full-year result and slightly higher dividend.
CBA shares jumped 5.8%, Westpac shares were up 4.6% for the week, ANZ gained 4.8%, but NAB shares increased only 1.1% (thanks to the 1.5% rise on Friday after the third-quarter trading update, which baffled many commentators who failed to see its similarity to the CBA’s result).
CBA ended at $138.13, just 11 cents short of its record high of $138.24. Its market value closed at more than $231 billion, $29 billion ahead of BHP’s $202 billion (which closed at $40.01, down 2.2% for the week), marking one of the largest leads ever.
While the gains in the big banks helped the ASX rise for a sixth consecutive session on Friday, the share price futures index on Friday night saw a 14-point fall in the SPI for the start of trading today.
Local traders will also have to contend with another fall in iron ore prices on Friday after trading ended for the week. However, this will be offset by a surge in world gold prices to more than $US2,500 an ounce, setting new record highs for spot and futures contracts.
Westpac has a trading update this morning, with ANZ providing an update tomorrow.