Australia: Shares end higher but posts first weekly loss in April

[BENGALURU] Australian shares ended higher on Friday, but reported its first weekly loss this month, with investors now eyeing corporate results that are set to reflect the economic damage from the coronavirus pandemic.

The benchmark S&P/ASX 200 index closed 0.5 per cent higher at 5,242.6. For the week, it shed 4.5 per cent.

Volatility and volumes remained subdued as supermarket operators and banks are set to kick-off a short earnings window.

Supermarket chains Woolworths and Coles Group are likely to report a sales bump due to consumer stockpiling next week. Australia and New Zealand Banking Group will commence earnings for banks.

"It will get increasingly harder for companies to window-dress earnings," said Brad Smoling, managing director at Smoling Stockbroking.

The battered energy space led gains, rising 2 per cent, helped by a rebound in oil prices. The sub-index still recorded a second straight weekly loss.

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Woodside Petroleum was up 1.8 per cent, while Oil Search closed 4.4 per cent higher. Santos was the only oil and gas company of the majors to post a weekly gain after it reassured markets that it could weather the crash in prices.

Oil faced a tumultuous week, with the global benchmark Brent touching its lowest in more than two decades, while US crude went negative on Monday for the first time ever.

Healthcare stocks rose 1.7 per cent, with Biotech firm and index heavyweight CSL adding 2.3 per cent. The index posted a weekly loss after a four-week winning streak.

Meanwhile, Mesoblast jumped 38.9 per cent after reporting an 83 per cent survival rate in ventilator-dependent Covid-19 patients treated with its cell therapy.

Virgin Australia Holdings' administrators said the bankrupt airline was saddled with US$4.4 billion worth of debt and will seek a three-month payment waiver from aircraft lessors.

The mining index finished 1.6 per cent higher, with BHP Group and Fortescue Metals Group gaining 2.7 per cent and 3.4 per cent, respectively.

In New Zealand, its benchmark S&P/NZX 50 index fell 0.3 per cent or 26.63 points to finish at 10,419.48.

Top power producer Meridian Energy gained 2.8 per cent.

The country's finance minister said more stimulus measures would be needed to boost the coronavirus-hit economy at some point and that there were a range of options still available.

REUTERS