ASX closes week up 3.5% after record highs, energy leads

The Australian share market closed slightly lower on Friday, but the weekly scoreboard told a different story. The ASX200 fell 8 points, or 0.1%, to 9263.6 on the session, trimming the gain from a week that included consecutive record highs and a 3.5% climb from the prior Friday.

Energy stocks carried the day. Woodside shares rose 0.5% to A$31.88, Santos added 0.4% to A$7.66, and Ampol gained 0.9% to A$38.78. The sector was the strongest performer among the 11 industry groups, up 0.6%. Seven sectors finished lower.

Healthcare was the weakest, down 0.9%. ResMed shares tumbled 8.3% to A$24.87 after the sleep device maker's full-year results showed it would raise some prices to keep pace with inflation. The move erased a chunk of the stock's year-to-date gains.

Financials weakened ahead of a packed earnings week. Commonwealth Bank fell 1% to A$178.01, with investors waiting for full-year results on Wednesday. National Australia Bank slipped 1.1% to A$42.23, Westpac lost 1.6% to A$37.93, and ANZ dropped 1% to A$37.73.

James Hardie Industries jumped 5.8% to A$43.18 after quarterly income surged 67% to US$104.3 million. Lithium miners rallied, with Pilbara Minerals up 6.5% to A$4.58 and Liontown up 9.3% to A$1.18. The improved outlook for battery metals drove the gains.

Alliance Aviation shares rose a further 6.1% to 83c after resuming trading following a 33% surge on Thursday. Nick Scali shares fell 0.7% to A$17.11, with the furniture retailer reporting flat sales in the first weeks of the new financial year after a 31% jump in full-year profit.

The Reserve Bank of Australia delivers its interest rate decision on Tuesday. Markets price a very low probability of a hike. The commentary alongside the decision will be closely watched. Inflation has been volatile, and fuel price rises are feeding through. The RBA's statement will be scrutinised for any shift in tone.

Commonwealth Bank reports its 2026 financial year results on Wednesday. Most analysts expect earnings per share growth of around 6%. The focus will be on margins, loan volumes, and bad debt levels. The cooling property sector and rising mortgage competition are key risks flagged by analysts.

Westpac reports a quarterly update on Monday, and ANZ on Thursday. Other earnings due next week include AGL, Telstra, Treasury Wine Estates, QBE, and Computershare, along with Car Group, Life360, SGH, Origin Energy, and Transurban.

In the US, the reporting season is winding down, with Cisco Systems, Applied Materials, and Super Micro Computer among those due. The US Consumer Price Index, retail sales, and Producer Price Index will be the macro focus. Cost pressures from higher energy prices are the concern.

The ASX200's 3.5% weekly gain came as global investors rotated toward the Australian market. The local market's weighting in miners and banks, with a relatively small technology sector, has made it one of the few global refuges from the AI rally's growing selectivity. Nervousness over the Strait of Hormuz and the US market pullback capped Friday's session, but the damage was contained.

Woodside shares carry an Alpha Score of 67/100, rated Moderate. The energy company benefited from rising oil prices this week, with the sector outperforming as geopolitical risk lifted crude.