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CBA shares record as ASX climbs higher

Steven DeareAAP
Shares on the ASX have moved higher, with energy stocks leading the gains.
Camera IconShares on the ASX have moved higher, with energy stocks leading the gains. Credit: AAP

Commonwealth Bank shares fetched a record price and a fund manager predicted Australia's market would move higher despite inflation concerns.

Shares in the nation's biggest bank reached $97.38 on Friday then settled higher by 0.63 per cent to $96.58.

The biggest stock on the market has gained more than 17 per cent this year as the economy and housing market improved despite COVID-19.

The ASX had a broad-based rally after three days of losses. The losses were partly due to the biggest jump in US prices in 12 years.

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Shares lost 0.94 per cent this week.

Yet the deputy head of investments at asset manager Van Eck Australia, Jamie Hannah, was upbeat about next week.

"There is not a lot stopping growth at the moment," he said.

"Everyone hates buying in at the top of the market, but I can't see any factors to stop it.

"People talk about inflation but it's not a number that is going to stop this momentum."

Mr Hannah noted improved performances from property trusts on Friday.

Vicinity Centres gained 2.34 per cent to $1.53. Dexus improved by two per cent to $10.21. Westfield operator Scentre Group rose 1.9 per cent to $2.68.

Investors abandoned these companies from the outset of the pandemic last year.

Their share prices remain below pre-COVID ones, but are improving.

"Inflation expectations help these companies," Mr Hannah said.

"You have to ask yourself were they hit too hard recently and are the prices coming back to where they were."

The benchmark S&P/ASX200 index closed higher by 31.5 points, or 0.45 per cent, to 7014.2.

The All Ordinaries closed up 30.4 points, or 0.42 per cent, to 7239.4 points.

The indices had been about one per cent higher early but a late drop in commodity prices weighed on materials shares.

They were the only sector to close lower at 1.18 per cent.

BHP shed 1.55 per cent to $49.57. Fortescue dropped 2.77 per cent to $22.79. Rio Tinto lost 2.01 per cent to $125.43.

Another late concern was Singapore's four week coronavirus lockdown. The strictest rules on gatherings since last year led the Straits Times Index to drop.

Analysts had little explanation for energy shares gaining most.

Oil prices were lower as coronavirus infections remain high in major consumer India.

A major fuel pipeline in the United States reopened after being shut due to a cyber attack, with the improved supply helping prices ease.

Whitehaven Coal rose 9.16 per cent to $1.37.

CommSec analyst James Tao said this was probably due to a broker upgrade.

Oil Search rose 2.96 per cent to $3.82.

Technology stocks have been the big losers of inflation concerns and gained only 0.12 per cent.

They lost 6.89 per cent this week.

In banking, NAB was best of the big four on Friday and rose one per cent to $26.22.

Next week there is plenty of data on the home front.

On Monday, agribusiness Elders will give first-half earnings.

On Tuesday, the Reserve Bank will publish the minutes of its May meeting. The central bank held to its record low cash rate of 0.1 per cent.

Employment data due Thursday may show whether the end of the JobKeeper wage subsidy is contributing to unemployment.

RBC Australia has tipped a small rise in the jobless rate to 5.7 per cent.

On Friday, retail sales figures for April are due.

The Australian dollar was buying 77.40 US cents at 1726 AEST, higher from 77.22 US cents at Thursday's close.

ON THE ASX

* The benchmark S&P/ASX200 index closed higher by 31.5 points, or 0.45 per cent, to 7014.2 on Friday.

* The All Ordinaries closed up 30.4 points, or 0.42 per cent, to 7239.4 points.

* At 1726 AEST, the SPI200 futures index was up by 11 points, or 0.16 per cent, to 7013.

CURRENCY SNAPSHOT

One Australian dollar buys:

* 77.40 US cents, from 77.22 cents on Thursday

* 84.65 Japanese yen, from 84.74 yen

* 63.90 Euro cents, from 63.85 cents

* 55.03 British pence, from 54.96 pence

* 107.69 NZ cents, from 107.80 cents.

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