Market takes breather after a long run
The benchmark S&P/ASX 200 Index fell 10.5 points, or 0.2 per cent, to close the week at 5400.7 points. The broader All Ordinaries Index closed the week down 12.2 points, or 0.22 per cent, to 5394.4 points.
"The party continues for the banks. That's probably one of the biggest stories for the week," said Leyland Private Asset Management senior portfolio manager Rohan Schmidt. "If you take out the banks, it's been a fairly flat week. We've had the interruption of the Melbourne Cup, which kept volumes a bit on the low side."
Iron ore miners fared well for the week, with Mount Gibson the best performing member on the S&P/ASX 200 with gains of 12.64 per cent.
Atlas Iron was a close second, closing 12.32 per cent higher. Fortescue Metals, Sundance Resources, Kingsgate Consolidated and Lynas Corporation were also among the top 10 performers.
Official figures released during the week showed that iron ore exports had risen to a record high of $8.1 billion in September as the trade deficit narrowed to $284 million. Meanwhile, iron ore prices have remained stronger for longer despite forecasts of lower demand.
The Reserve Bank kept the door open for further interest rate cuts even as it left the cash rate on hold at 2.5 per cent at its board meeting.
"This week, with the banks going ex-dividend, you've got CBA hitting record highs. A few companies that haven't performed are starting to perform. BHP's had a great week. It seems to have broken that $36 to $37 level and is trading higher than that," RBS Morgans senior trader Luke McElwaine said.
"So all of these top-20-type stocks are all hitting 12-month highs and I think that's a great sign for the market. Our market appears to have broken a trading range between 4000 and 5200, and we seem to be holding those levels around 5400."
Even so, a fall in most base metal prices dented diversified resources giant BHP Billiton and its rival Rio Tinto on Friday, Lonsec senior client adviser Michael Heffernan said.
"The big resources stocks down a bit [on Friday] probably due to the waxing and waning of commodity prices not shooting the lights out [on Thursday]," he said.
BHP lost 29¢ to $37.95 on Friday, Rio dropped 23¢ to $65.25 and iron ore miner Fortescue Metals shed 24¢ to $5.46. Gold miner Newcrest gave up 25¢ to $9.88.
In banking, Westpac was off 95.07¢ at $33.18 after paying out a 98¢ dividend. "It held its dividend very well. That is a very good result," Mr Heffernan said.
Of the other banks, ANZ lifted 33¢ to $32.71 on Friday, National Australia Bank added 10¢ to $34.78, while Commonwealth Bank came back from its record high, losing 22¢ to $79.10.
Qantas added 2.5¢ to $1.25 after it confirmed it would close its Avalon heavy maintenance facility.
Frequently Asked Questions about this Article…
The Australian sharemarket fell slightly this week, marking the first decline after four weeks of gains. This was influenced by Westpac going ex-dividend and a new all-time high for Commonwealth Bank shares.
The Australian share market fell slightly this week, marking the first decline after four weeks of gains. This was influenced by Westpac going ex-dividend and a general flat performance outside of the banking sector.
Iron ore miners performed well this week, with Mount Gibson leading the gains on the S&P/ASX 200 with a 12.64% increase. Atlas Iron also saw significant gains, closing 12.32% higher.
Banks were a major highlight this week, with Commonwealth Bank shares hitting a new all-time high. Despite Westpac going ex-dividend, it held its dividend well, which was seen as a positive result.
The Melbourne Cup caused a slight interruption in the market, leading to lower trading volumes for the week.
Iron ore miners performed well, with Mount Gibson leading the gains at 12.64%, followed closely by Atlas Iron at 12.32%. Other top performers included Fortescue Metals, Sundance Resources, Kingsgate Consolidated, and Lynas Corporation.
The big banks had a mixed performance. Westpac went ex-dividend, while Commonwealth Bank hit a record high before slightly declining. ANZ and National Australia Bank saw modest gains.
The Melbourne Cup caused a slight interruption in the market, leading to lower trading volumes for the week.
Iron ore exports reached a record high of $8.1 billion in September, and prices have remained strong despite forecasts of lower demand.
Iron ore exports reached a record high of $8.1 billion in September, contributing to a narrowed trade deficit. This strong performance in iron ore exports supported the market despite forecasts of lower demand.
No, the Reserve Bank of Australia kept the cash rate on hold at 2.5% but indicated that further interest rate cuts could still be possible.
The Reserve Bank kept the cash rate on hold at 2.5% but indicated that further interest rate cuts remain a possibility.
BHP and Rio Tinto experienced declines on Friday due to falling base metal prices, with BHP losing 29 cents and Rio Tinto dropping 23 cents.
BHP and Rio Tinto experienced a decline on Friday due to a fall in most base metal prices. BHP lost 29 cents to $37.95, while Rio dropped 23 cents to $65.25.
Qantas saw a slight increase, adding 2.5 cents to $1.25, following the confirmation of the closure of its Avalon heavy maintenance facility.
Qantas confirmed it would close its Avalon heavy maintenance facility, which led to a slight increase in its share price by 2.5 cents to $1.25.
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