Australia shares hit record high on boost from Afterpay, banks

Australian shares ended at a record high on Friday, hitting an all-time peak for a fourth session out of five this week, with buy now, pay later firm Afterpay and the ‘Big Four’ banks doing much of the heavy lifting.

The benchmark S&P/ASX 200 index closed up 0.4 per cent at a record high of 7,538.4. It gained around 2 per cent over the week, its biggest jump since May 28.

The Reserve Bank of Australia decided against pushing back tapering of its bond purchases from September, saying fiscal stimulus was a “more appropriate” tool to deal with coronavirus outbreaks in the country.

The central bank governor also told lawmakers that the economy was unlikely to see two back-to-back quarters of contraction.

Afterpay marked its best week since May last year after it agreed to $29 billion buyout by Jack Dorsey’s payments firm Square in an industry shaping deal.

Locally listed rivals including Zip Co Ltd saw big gains over the week as well as analysts predict further deal-making and greater awareness of the sector.

The Big Four banks, meanwhile, gained between 0.3 per cent and 1 per cent ahead of Commonwealth Bank of Australia and National Australia Bank earnings.

The financial sub-index gained more than 3 per cent over the week in its best one since early March.

Miners ended a volatile week 1.3 per cent lower, losing about 2.4 per cent for the week. Rio Tinto and BHP Group fell 1.6 per cent and nearly 2.0 per cent , respectively.

Nick Twidale, co-founder of Xchainge, flagged that investors were concerned about a danger of a sharp correction in the mining sector.

In New Zealand, the S&P/NZX 50 index rose 0.1 per cent to 12,770.0, with fuel supplier Z Energy Ltd leading gains. It rose 5.5 per cent on getting shareholder vote in favour of a refinery conversion.