The benchmark ASX 200 index rose by 40 points, or 0.47%, to close at 8,628.20 on Friday, while the broader All Ordinaries increased by 49.60 points, or 0.56%, to finish at 8,925.30. Despite these daily gains, the ASX 200 fell by 0.18% over the past week, marking the end of a three-week streak of upward movement.
The Australian dollar also experienced a decline against the US dollar, currently trading at 66.06 US cents. On a day marked by positive trading, eight out of the eleven sectors saw gains, with technology, financials, and industrials leading the charge.
Technology and Financial Sectors Lead Gains
In the technology sector, WiseTech Global shares surged by 3.15% to $70.18, Xero increased by 2.30% to $115.64, and Life360 shares rose by 2.55%. Overall, the technology sector traded 2.06% higher, buoyed by investor confidence in tech-driven growth.
Market heavyweight Commonwealth Bank shares climbed 1.77% to $157.75, while Westpac rose by 1.33% to $38.76, and National Australia Bank closed 0.84% higher at $42.14. ANZ was the exception, slipping slightly by 0.03% to $36.03 despite trading higher for most of the day.
Uranium Stocks Rebound
Uranium stocks made a strong recovery from Thursday’s losses. Boss Energy shares soared by 9.32% to $1.290, Paladin leapt by 8.89% to $9.06, and Deep Yellow jumped by 8.76% to $1.80, reflecting renewed investor interest in the sector.
Expert Insights and Economic Context
According to Shane Oliver, AMP’s head of investment strategy and chief economist, the current market dynamics align with the typical “Santa Claus rally” observed in December.
“In Australia, over the last 15 years, the average gain over the last two weeks of December has been 0.9% with shares up 9 years out of 15,” Dr. Oliver noted.
He further commented that Friday’s boost from the Japanese central bank indicates a stable economic outlook, with the next interest rate hike likely 6-9 months away.
Japan’s economic policies also played a role in the day’s market movements. The Japanese 10-year bond rate surged to 2%, following the Bank of Japan’s decision to increase short-term interest rates by 25 basis points to 0.75%, the highest level since 1995. This move suggests progress in Japan’s long-standing battle with deflation.
Corporate Developments and Market Reactions
Corporate Travel Management announced the dismissal of its UK and Europe chief executive, Michael Healy, for breaching contract obligations. In a related update, the company is working with KPMG to finalize its financial year 2025 statement, aiming for completion by February 2026. The company has been under a trading suspension since late August.
Meanwhile, Netwealth shares fell by 6.48% to $25.25 after revealing plans to pay out $100 million to over 1,000 victims who invested in the First Guardian Master Fund. In contrast, Austal shares surged by 5.77% to $6.60, buoyed by the announcement of a second major contract within two days.
The week’s market activity highlights the interplay between sector-specific gains and broader economic signals, underscoring the complexities investors face as they navigate the final weeks of the year. With the potential for further economic shifts, market watchers will be keenly observing any developments that could impact the ASX’s trajectory in the coming months.
