The Australian share market overcame a poor start to rise and salutes the end of the week on Friday, well within reach of record highs.

A broad rally in sectors such as healthcare, IT, consumer discretionary and real estate stocks helped to overcome weakness in energy and utilities, helping the ASX 200 to rise by 0.5% or 41.5 points to close at 8987.4 points.

That is not far off the record close of 9019.2 points set in August – a level that could be eclipsed in the coming week if the positive trend continues.

There is a chance of that as investors continue to see signs of profit growth locally and offshore, with the chance of interest rate cuts coming down the track.

Although there is plenty to worry about as well, with the United States once again “enjoying” another public service shutdown of unknown duration and no shortage of doomsayers warning of an AI investment overshoot and rising unemployment.

Oil the Big Weak Spot

The real weak spot was oil, which fell heavily during the week before a planned meeting of OPEC+ that is likely to lead to an oversupply problem.

Oil prices were sharply weaker, down below $US65 a barrel and as low as US$61 for West Texas Intermediate.

That was naturally bad news for Santos (ASX: STO), which fell 2.2%, Yancoal (ASX YAL) down 1.5%, although shares in sector leader Woodside (ASX: WDS) only fell marginally, limiting the damage.

Gold Keeps Rising, Leaving Gold Miners Behind

Gold prices once again benefited from US government lockdown uncertainty and have enjoyed seven weeks of gains.

Despite the good gold price, shares in gold miners saw a bit of profit-taking, with Northern Star (ASX: NST) off 1.7% and Ramelius (ASX: RMS) and Evolution (ASX: EVN) both dropping 1.5%.

There was nothing holding back technology shares with Block (ASX: XYZ) up a solid 5.4% to $117.5, Appen (ASX: APX) up 2.3% to 89¢ while household snooping company Life360 (ASX: 360) added 3.1% to $55.44.

Healthcare shares were also solidly higher, buoyed by ResMed (ASX: RMD), which jumped 3% to $42.07 and heavyweight CSL (ASX: CSL) was up 0.8% to $207.79.

Also joining the party with a 1.7% rise apiece were Pro Medicus (ASX: PME) and Ramsay Health Care (ASX: RHC) to hit $314 and $32.09, respectively.

AGL hit on climate plans

There were plenty of stocks moving around on news, with utility company AGL (ASX: AGL) down 0.9% to $9.09 after big shareholder Grok Ventures, owned by tech billionaire Mike Cannon-Brookes, voted against its latest climate plan.

Eagers Automotive (ASX: APE) shareholders enjoyed a memorable day as shares jumped 15.3% to a record close of $33.80 after it completed its $452 million equity raise to buy a 65% stake in dealership group CanadaOne Auto for $1 billion and expand into North America.

Shares in DigiCo (ASX: DGT) surged by 11.7% to $3.05 after rising demand for its AI infrastructure boosted its earnings guidance.

Mesoblast up on Therapy News

It was a good day too for shareholders in Mesoblast (ASX: MSB) as the stock added 8.7% to $2.76 after its children’s bone marrow transplant therapy was formally recognised by the United States Medicare & Medicaid Services.

While Optus has copped a pasting recently, it was Telstra’s turn yesterday after the Federal Court ordered it to pay a penalty of $18 million for moving some Belong customers to a lower speed internet plan without informing them.

Telstra (ASX: TLS) fell 0.6% to $4.85.

The Week Ahead

The government shutdown in the US may play havoc with economic releases this week but the main focus will be on the start of third quarter earnings with results expected from Delta, PepsiCo and BlackRock to kick things off.

Central banks will be in focus as well with a jumbo 0.5% cut expected from the New Zealand Reserve Bank to help support their economy.

The minutes from the US Fed’s decision to cut rates in September could also fill in some of the current plans for easing rates.

Of course, that assumes the shutdown allows for the release of the minutes at all.

Market Wrap: Shares Move Within Reach of a Record

The Australian share market overcame a poor start to rise and salutes the end of the week on Friday, well within reach of record highs.

A broad rally in sectors such as healthcare, IT, consumer discretionary and real estate stocks helped to overcome weakness in energy and utilities, helping the ASX 200 to rise by 0.5% or 41.5 points to close at 8987.4 points.

That is not far off the record close of 9019.2 points set in August – a level that could be eclipsed in the coming week if the positive trend continues.

There is a chance of that as investors continue to see signs of profit growth locally and offshore, with the chance of interest rate cuts coming down the track.

Although there is plenty to worry about as well, with the United States once again “enjoying” another public service shutdown of unknown duration and no shortage of doomsayers warning of an AI investment overshoot and rising unemployment.

Oil the Big Weak Spot

The real weak spot was oil, which fell heavily during the week before a planned meeting of OPEC+ that is likely to lead to an oversupply problem.

Oil prices were sharply weaker, down below $US65 a barrel and as low as US$61 for West Texas Intermediate.

That was naturally bad news for Santos (ASX: STO)which fell 2.2%, Yancoal (ASX YAL) down 1.5%, although shares in sector leader Woodside (ASX: WDS) only fell marginally, limiting the damage.

Gold Keeps Rising, Leaving Gold Miners Behind

Gold prices once again benefited from US government lockdown uncertainty and have enjoyed seven weeks of gains.

Despite the good gold price, shares in gold miners saw a bit of profit-taking, with Northern Star (ASX: NST) off 1.7% and Ramelius (ASX: RMS) and Evolution (ASX: EVN) both dropping 1.5%.

There was nothing holding back technology shares with Block (ASX: XYZ) up a solid 5.4% to $117.5, Appen (ASX: APX) shares up 2.3% to 89¢ while household snooping company Life360 (ASX: 360) added 3.1% to $55.44.

Healthcare shares were also solidly higher, buoyed by ResMed (ASX: RMD), which jumped 3% to $42.07 and heavyweight CSL (ASX: CSL) was up 0.8% to $207.79.

Also joining the party with a 1.7% rise apiece were Pro Medicus (ASX: PME) and Ramsay Health Care (ASX: RHC) to hit $314 and $32.09, respectively.

Eagers and DigiCo Surge

Eagers Automotive (ASX: APE) shareholders enjoyed a memorable day as shares jumped 15.3% to a record close of $33.80 after it completed its $452 million equity raise to buy a 65% stake in dealership group CanadaOne Auto for $1 billion and expand into North America.

Shares in DigiCo (ASX: DGT) surged by 11.7% to $3.05 after rising demand for its AI infrastructure boosted its earnings guidance.

Mesoblast up on Therapy News

It was a good day too for shareholders in Mesoblast (ASX: MSB) as the stock added 8.7% to $2.76 after its children’s bone marrow transplant therapy was formally recognised by the United States Medicare & Medicaid Services.

While Optus has copped a pasting recently, it was Telstra’s turn yesterday after the Federal Court ordered it to pay a penalty of $18 million for moving some Belong customers to a lower speed internet plan without informing them.

Telstra (ASX: TLS) fell 0.6% to $4.85.

The Week Ahead

The government shutdown in the US may play havoc with economic releases this week but the main focus will be on the start of third quarter earnings with results expected from Delta, PepsiCo and BlackRock to kick things off.

Central banks will be in focus as well with a jumbo 0.5% cut expected from the New Zealand Reserve Bank to help support their economy.

The minutes from the US Fed’s decision to cut rates in September could also fill in some of the current plans for easing rates.

Of course, that assumes the shutdown allows for the release of the minutes at all.

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