AUSTRALIAN shares ended at a record high on Friday (Mar 8), boosted by interest rate-sensitive financial stocks, while investors continued to bet on monetary policy easing after the US Federal Reserve projected rate cuts in the next 12 months.
The S&P/ASX 200 index rose 1.1 per cent to end at 7,847.00. The benchmark touched an all-time high of 7,853.10 earlier in the session, touching a record peak for the second time this week.
Gross domestic product data showed slower-than-expected growth pace in Australia in the fourth quarter, outlining that the country’s central bank can start rate cuts in the next 12 months.
Fed Chair Jerome Powell told US lawmakers on Wednesday that interest rate cuts can be expected in coming months, but only if warranted by further evidence of falling inflation.
“With the drumbeat for a historic monetary policy shift growing louder, the expectation that major players in the financial sector could benefit from a new round of tailwinds is not unwarranted,” IG Markets market analyst Hebe Chen said.
Financials jumped 2 per cent to hit a more than 16-year high, with the “big four” banks gaining in the range of 1.7 per cent to 2.6 per cent. Commonwealth Bank of Australia closed at its highest level ever, after climbing 1.8 per cent.
National Australia Bank rose 2.3 per cent to end at a nearly nine-year high.
Healthcare stocks gained 1.3 per cent, buoyed by biotechnology giant CSL, which also jumped 1.3 per cent.
The energy subindex gained 1 per cent, tracking a rise in Brent prices. Oil and gas giants Woodside Energy and Santos rose 1.7 per cent and 0.6 per cent, respectively.
Ramelius Resources ended 1 per cent higher, after the gold miner confirmed talks with Karora Resources for a potential acquisition of the Canada-based mine operator.
New Zealand’s benchmark S&P/NZX 50 index rose 1 per cent to close at 11,923.72. REUTERS
