Big start to 2020 for investors

THE Australian share market has roared to a new high after enjoying its best week in nearly a year.

The benchmark S&P/ ASX200 index finished yesterday up 54.8 points, or 0.8 per cent, to 6929 points, while the broader All Ordinaries closed above 7000 for the first time, finishing up 50.5 points, or 0.72 per cent, at 7041.9 points.

The 186.7-point, 2.72 per cent, gains for the week were the ASX’s strongest weekly gains since a 200.8-point surge for the week ending February 8, 2019. So far in January, the ASX200 is already up 239.5 points, or 3.5 per cent, after gaining 18.38 per cent in all of 2019.

“It’s been a long time since we’ve had a couple of good sessions in a row,” said CommSec market analyst James Tao.

“It certainly has been a good session and a good day for the market.”

Bell Direct market analyst Jessica Amir credited the pending Phase 1 trade deal between the US and China and a trifecta of better than expected local economic news this week for the gains.

Specifically, housing approvals and retail sales figures for November both beat expectations, while the trade balance also swelled more than expected thanks to surging iron ore and coal exports.

Health care was up the most, gaining 2.1 per cent as CSL built on its stunning 2019 gains with a 2.8 per cent rise to $299.30.

Consumer staples, tech stock and telecom stocks also had a strong day, with Vocus gaining 8.1 per cent to $3.20, Freedom Foods rising 5.5 per cent after reporting it wasn’t disrupted by the bushfires and Objective Corp rising 5.2 per cent.