ASX rises 0.9pct, for 3rd week of gains

The local share market has posted gains as China's economic hub of Shanghai reopens following two months of COVID-19 lockdowns.

The benchmark S&P/ASX200 index closed Friday up 62.9 points to 7,238.8, a gain of 0.88 per cent. The broader All Ordinaries finished 71.6 points higher to 7,472.4, a 0.97 per cent gain.

For the week the ASX200 was up 56 points, or 0.78 per cent.

It was the market's third week of gains.

Every sector was up on Friday except for telecommunications, which was flat, and consumer discretionary shares, which dipped slightly.

Materials was the biggest gainer, up 2.6 per cent, with BHP rising 2.5 per cent to $46.76, Rio Tinto up 2.7 per cent to $116.03, and Fortescue gaining 4.1 per cent to $21.46.

"If you have a step back and look at the best performers this week, they are in mining and energy," Saxo Australian market strategist Jessica Amir told AAP.

"And that's purely because Shanghai, the most populated, dense city, has kicked off manufacturing. So really good for all those companies that are in iron ore, copper, aluminium and coal."

In the energy sector, Beach Energy and Whitehaven Coal both hit 52-week highs, up 2.5 per cent and 3.2 per cent, respectively. Geelong refinery owner Viva Energy rose 2.8 per cent to hit a fresh all-time high.

Tech companies were also up on Friday, with Wisetech Global up 5.1 per cent to $42.94 and Altium up 3.9 per cent to $28.89.

Lithium miners Pilbara and Alkeem rebounded, rising 7.5 and 3.8 per cent, but both are down around 15 per cent for the week on fears the battery metals boom is over.

The big banks were mixed, with CBA down 0.2 per cent to $105.20 and NAB droppnig 0.1 per cent to $31.28. But Westpac was up 0.3 per cent to $24 and ANZ rose 0.2 per cent to $25.02.

Healius was down 8.7 per cent to $3.80 after the pathology, imaging and day hospital chain said first half-trading had been strong, but it expected "more difficult market condition in the second half of the financial year".

Incannex was up eight per cent to 40.5 cents after announcing positive results from a proof-of-concept clinical trial investigating the use of cannabis-based drug candidate to treat sleep apnoea. The 11-person study was conducted at the University of Western Australia's sleep centre.

The Australian dollar meanwhile hit a one-month high against its US counterpart, buying 72.56 US cents, from 71.84 US cents at Thursday's close.

Looking forward, Ms Amir said traders would be closely watching US non-farm payroll figures for May, which will be released Friday night, Australia time.

"If it does miss expectations, it could cause another rally," she said.

Fewer jobs being added to the US economy might prompt the US Federal Reserve to ease the pace of interest rate hikes, Ms Amir said.

ON THE ASX:

The benchmark S&P/ASX200 index finished Friday up 62.9 points, or 0.88 per cent, to 7,238.8.

The All Ordinaries index closed 71.6 points, or 0.97 per cent, higher to 7,472.4

CURRENCY SNAPSHOT:

One Australian dollar buys:

72.56 US cents, from 71.84 US cents when the ASX closed on Thursday

94.28 Japanese yen, from 93.27 yen

67.50 Euro cents, from 67.26 cents

57.71 British pence, from 57.34 pence

110.72 NZ cents, from 110.56 cents

Austrlaian Associated PressBack to Breaking News

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