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Australia shares post best weekly jump in 3 mths as banks shine on c.bank's policy support

Published 05/02/2021, 05:06 pm
Updated 05/02/2021, 05:12 pm
© Reuters.

* Financials hit their highest in 11 months

* Afterpay closes at a record high

* Big dividend paying stocks in favour after RBA comments - broker (Updates to close)

By Harish Sridharan

Feb 5 (Reuters) - Australian shares ended higher on Friday, posting their best weekly jump in more than three months, led by gains in financials after the Reserve Bank of Australia reiterated extending a supportive monetary policy for as long as needed.

The S&P/ASX 200 index .AXJO ended 1.1% higher at 6,840.5 and posted a weekly gain of 3.5%, marking its best weekly jump since Nov. 6.

The country's central bank in its 'Statement on Monetary Policy' reaffirmed that it was committed to keeping policy "highly supportive" until inflation moved into its 2-3% target band, which was unlikely until 2024 at the earliest. before a parliamentary economics committee, RBA Governor Philip Lowe also reiterated this stance, saying the cash rate will be maintained at 10 basis points "for as long as is necessary". think Philip Lowe and the Reserve Bank are doing a very good job at addressing the issues and maintaining the confidence that we are going to come out of this," said James McGlew, executive director of corporate stockbroking at Argonaut.

As a result of the RBA's stance, the big dividend paying stocks, particularly the banks, are getting a lot of love from investors at the moment, McGlew added.

Financials .AXFJ hit its highest in 11 months, with all the so-called "Big Four" banks seeing gains in the range 2% to 2.2%.

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Technology stocks .AXIJ rose 2.4%, tracking U.S peers, with buy-now-pay-later giant Afterpay APT.AX closing at a record high.

Energy stocks .AXEJ also rose after oil prices jumped to a one-year high, as Santos STO.AX rose 2.4%, hitting its highest in over one week, and Woodside Petroleum WPL.AX rose 1.1%. O/R

Several major Australian companies, including Commonwealth Bank of Australia CBA.AX , Newcrest Mining NCM.AX and Macquarie Group MQG.AX , are expected to report their financial results in the following week.

New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.48% to 13,053.87, with seafood company Sanford SAN.NZ gaining most.

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