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Australian shares track Wall Street higher; post biggest weekly loss in 11

Published 14/05/2021, 05:15 pm
© Reuters.
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* Whitehaven Coal ends 9.4% higher, top gainer on ASX200

* CBA tracks Wall Street peers to hit record high

* NZ50 end lower for eighth session in a row (Updates to close)

By Savyata Mishra

May 14 (Reuters) - Australian shares ended higher on Friday, led by gains in banks and energy stocks, tracking an overnight Wall Street rebound, but the benchmark index posted its biggest weekly drop in 11 weeks.

The S&P/ASX 200 index .AXJO ended 0.5% higher at 7,014.2, after three days of heavy losses. For the week, it ended 0.9% lower, its biggest weekly drop since Feb.26.

After inflation fears led to volatility all week in markets, global equities took cues from the Wall Street to march higher, with investors buying back growth stocks. MKTS/GLOB

Australia's heavyweight financial subindex .AXFJ ended nearly 1% higher, with top lender Commonwealth Bank of Australia CBA.AX hitting a record high. night's U.S. rebound was led by financials. ..that seems to be reflected in the ASX," said Brad Smoling, managing director at Smoling Stockbroking.

"Even if we do have inflationary issues, financials are perceived to be the ones that will still be okay."

Lender Westpac WBC.AX , Australia and New Zealand Banking Group ANZ.AX and National Australia Bank NAB.AX ended up between 0.9% and 1%.

Energy stocks .AXEJ led gains on the benchmark, finishing 1.7% higher after shedding nearly 2% over the week. O/R

Oil prices were subdued, however, analysts at IG sounded optimism over Colonial Pipeline reopening since it could ease the gasoline shortage situation.

The country's largest independent coal miner Whitehaven Coal WHC.AX led gains on the subindex as well as on the benchmark, gaining up to 10.4%, notching its biggest intraday percentage jump in more than five months.

But miners .AXMM lost 1.6% as iron ore prices dived.

Global titan BHP Group BHP.AX lost 1.6%, while Rio Tinto (LON:RIO) RIO.AX and Fortescue Metals FMG.AX fell nearly 2% and 2.8%, respectively.

New Zealand's benchmark S&P/NZX 50 index .NZ50 ended 0.5% lower at 12,367.86, falling for an eighth straight session and posting its worst weekly performance since Feb. 12.

Movie software maker Vista Group VGL.NZ and Synlait Milk SML.NZ were the top losers.

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