Aussie shares set another record on back of rates hype

The local share market has finished at its highest-ever level, eclipsing its previous record set eight weeks ago.

The benchmark S&P/ASX200 index on Friday rose 38.6 points, or 0.45 per cent, to 8,532.3, breaking its previous record of 8,495.2 from December 3.

The broader All Ordinaries climbed 43.8 points, or 0.5 per cent, to 8,789.7.

The ASX200 rose 1.5 per cent for the week, its fourth straight week of gains and its best weekly performance in six weeks.

Moomoo market strategist Jessica Amir said the ASX's key rate-sensitive sectors - banks, miners, tech, real estate and industrial - all seemed to be gaining a new lease on life.

"The market is in bullish steam train mode, with the RBA widely expected to cut interest rates," Ms Amir said.

The Reserve Bank of Australia will announce its decision on February 18.

It was a good set-up for the start of earnings season, Ms Amir said.

News Corp, REA Group, Beach Energy, Amcor and Nick Scali will all deliver half-year results in the first week of February.

The ASX200 also gained 4.6 in January, its best performance since a 7.1 per cent rise in December 2023.

IG market analyst Tony Sycamore cautioned that a good start to the year did not guarantee one-way traffic.

Back in 2023, the ASX200 rose 6.2 per cent in January but fell eight per cent in the following seven weeks as COVID-19 re-opening euphoria in China fizzled out.

AMP chief economist Shane Oliver said the adage "as goes January so goes the year" had a mixed record - reasonably consistent, but not a perfect guide.

Since 1980, 76 per cent of the positive January performances in Australia have gone on to a positive year, while in the US that level was 85 per cent, he said.

"It's a positive sign for the year ahead," Dr Oliver said, cautioning that AMP did think it highly likely there would be a correction of 15 per cent or more in 2025.

"But ultimately, we see shares doing OK this year," he said.

Nine of the ASX's 11 sectors finished higher on Friday, with telecommunications and utilities lower.

The property and materials/mining sectors were the biggest gainers, both rising 1.1 per cent.

Goldminers shone as the safe haven asset changed hands at just under $US2,800 an ounce amid the geopolitical uncertainty flowing out of Washington.

Northern Star rose 2.6 per cent, Newmont rose 3.8 per cent and Vault Minerals climbed 6.9 per cent.

Elsewhere in the mining sector, BHP rose 1.2 per cent to $39.95 and Rio Tinto added 0.3 per cent to $117.40.

Fortescue was basically flat at $19.13.

In the financial sector, NAB rose 0.6 per cent to $40.14 - its first $40-plus close in 17 years - while CBA was basically flat at $160.56.

ANZ and Westpac both dipped 0.2 per cent, to $30.62 and $33.73.

A couple of companies fell as they reported earnings results.

Origin Energy fell 6.7 per cent to a six-week low of $10.45 after reporting its December quarter gas production was slightly lower than the prior quarter.

Pointsbet retreated 12.8 per cent to an almost three-month low of 85.5 cents after reporting it made $65 million in gross profit in the first half of 2024/25, up 11 per cent from a year ago.

ResMed dipped 0.8 per cent to $40.18 despite beating expectations by announcing $US1.3 billion in revenue in the December quarter, up 10 per cent from a year ago.

Investors might have been spooked by gross margins coming in slightly lower than market expectations.

Competitor Fisher & Paykel Healthcare dropped 1.0 per cent to $34.35.

The Australian dollar was buying 62.25 US cents, from 62.21 US cents at close of business Thursday.

ON THE ASX:

* The benchmark S&P/ASX200 index on Friday gained 38.6 points, or 0.45 per cent, to 8,532.3.

* The broader All Ordinaries climbed 43.8 points, or 0.5 per cent, at 8,789.7

CURRENCY SNAPSHOT:

One Australian dollar buys:

* 62.26 US cents, from 62.21 at the close of business Thursday

* 96.43 Japanese yen, from 96.12 yen

* 59.92 euro cents, from 59.71 euro cents

* 50.12 British pence, from 49.99 pence

* 110.26 NZ cents, from 110.19 NZ cents