The ASX is looking at a modest rise today – more likely it will open barely steady while those reports on China stopping Australian coal exports overshadow other news reports.
The Federal Government and the mining industry have tried to play down the reports, while Chinese government spokesman say a ban is wrong, but add that there are delays because of unknown tests are being carried out.
Rising optimism about the US-China trade talks were overtaken by the coal bank stories on Friday and over the weekend.
Overnight trading on the SPI futures market saw an 8 point gain for the ASX 200 by the close early Saturday morning, Sydney time.
That was after eurozone shares rose 0.2% on Friday and the US S&P 500 added 0.6%, with the Dow and Nasdaq higher (See separate story).
Australian shares rose 0.5% on Friday to end up 1.7% for the week helped by earnings results, talk of rate cuts and upgrades to earnings growth expectations for resources stocks on the back of higher commodity prices (such as copper), capped by a solid week for the big banks.
The ASX 200 Index climbed 101.2 points to end at 6167.3 while the All Ordinaries ended the week 93.3 points, or 1.5%, higher at 6241.9.
A solid performance by the big banks and resource majors helped drag the market higher.
Commonwealth bank shares jumped 4.3%, ANZ shares were up 4.25%, NAB shares edged up 1.9% and Westpac shares ended 2% higher. Even the embattled AMP had a good week with its shares rising 7.8% (but from a low base).
In fact, financials generally did better last week.
IOOF, the troubled wealth manager without a management team in the wake of the royal commission saw its shares jump 28% to $6.55 after its interim result was stronger than expected by investors.
Shares in mortgage brokers Australian Financial Group and Mortgage Choice rebounded after the ALP would change policy to bank broker fees completely.
Australian Financial Group shares rose 29.5% to $1.25, while Mortgage Choice climbed 8.2% to 86 cents. Investors remain worried about the impact on home sales on their revenue and bottom lines.
Shares in BHP rose 3.3% last week after its reasonable interim result, while Rio shares jumped 3.7% ahead of its full-year profit announcement on Wednesday.
The second last week of the December reporting season saw some surprising results.
For example, Webjet starred with the shares climbing more than 37% to $16.10 after online travel group reported better than expected figures, especially from its online accommodation operations.
Altium shares jumped 28.2% to $34.62 this week after releasing solid interim figures and forecasting $US200 million in revenue next year, with strong support from China.
Woolworths fell 4.6% after releasing weak interim results, while shares of rival Coles closed 8.5% lower at $11.53 after reporting a slow down in same-store growth in the December quarter – the profit result was immaterial because of the spin-off from Wesfarmers happened last November and most of the real profit was in the solid Wesfarmers result.
Bingo Industries fell 43.3% to $1.31 after Sydney waste collection company slashed its profit forecasts. Shares in a2milk jumped more than 13% last week after it unveiled better than expected sales figures for the December half and no sign of any slowdown in China.
