Miners, banks trim weekly loss for stocks

Australian shares recovered most of yesterday's loss but still ended down for a third consecutive week, the longest losing streak since late September.

At the close on Friday, the benchmark S&P/ASX200 index was up 49.6 points, or 1.2 per cent, at 4,140.4, while the broader All Ordinaries index had gained 49.9 points, also 1.2 per cent, to 4,192.1.

For the week, the ASX200 share index was off 0.5 per cent while the All Ordinaries fell 0.6 per cent.

Among the major sectors, materials rose 1.6 per cent, while financials gained 1.3 per cent and energy stocks added 1.2 per cent.

Advertisement: Story continues below

Wall Street and European markets rallied overnight after the number of jobless claims in the US fell to the lowest level since April 2008, in a further sign the world’s largest economy is returning to health.

Australian shares also gained on news that US consumer confidence beat expectations to reach a six-month high, as data indicated that the country’s economy should have grown by more than three per cent in the last quarter of the year.

Bell Potter senior adviser Stuart Smith said he expected more positive momentum in the market toward the end of the year as hopes for economic recovery grow.

‘‘I expect a new wave of confidence in the new year.’’

Friday’s trading day was shortened, ahead of the Christmas weekend and the market will next open on December 28.

Leading the market higher were shares in Gloucester Coal, which added 21.6 per cent to $8.55 after the company said it had entered into a merger proposal with China owned Yancoal Australia to create a newly listed company on the Australian market.

Miners and industrial stocks led the whole market higher, with both sectors adding 1.6 per cent as rising commodity prices helped push shares higher.

BHP Billiton rose 50 cents, or 1.4 per cent, to $35.15 while Rio Tinto added $1.19, or two per cent, to reach $61.84.

Financials were also strong performers, adding 1.3 per cent in the wake of a strong push higher by their global peers.

‘‘You won’t be able to find banking stocks this good anywhere else in the world, there’s no comparison,’’ Mr Smith said.

All of the big four banks were up, with Commonwealth Bank adding one per cent to $49.81, ANZ increasing 1.5 per cent to $20.85, National Australia Bank rising 1.3 per cent at $23.70 and Westpac climbing 0.9 per cent to $20.54.

Even the embattled retail sector managed to post gains after a week of profit downgrades from several big names.

But analysts remained less optimistic on prospects for the sector, with several downgrading their assessments of major retailers.

David Jones was the only retailer that was lower on Friday, losing 0.8 per cent to $2.43, while Myer added 0.5 per cent to $1.99.

Market turnover was below the monthly average, at one billion shares with a value of $4.3 billion as 18 shares rose for every one that fell.