ASX 200 weekly wrap: US elections and big banks boost shares

The Australian share market edged higher last week, thanks to strength from the banking sector and as US elections’ results remove some global market uncertainty.

The benchmark S&P/ASX200 index rose 1.24% to 5,922 points and the broader All Ordinaries index was up 1.28% at 6,011 points over the week.

Canstar’s General Manager of Wealth Josh Callaghan said markets were subdued in the lead up to the US midterm elections, however shares rebounded as global markets’ uncertainty eased following the results.

“Some analysts are suggesting the change in power will lock up a number of policies in the house and warn this may push the US president’s focus to international trade issues which have been the catalyst for much of the market unrest this year,” Mr Callaghan said.

Locally, financials led the sector gains with a 2.82% rise over the week, followed closely by information technology (2.51%) and consumer staples (2.32%).

Commonwealth Bank, ANZ and Westpac dominated market value gains last week, while National Australian Bank’s share price dropped 1.2% as it went ex-dividend.

Mr Callaghan said the market responded favourably to Westpac’s annual profit results and CBA’s quarterly trading update last week.

“While we saw AMP’s post-royal commission carnage in its quarterly update last month, Westpac and CBA results were solid despite facing many of the same headwinds,” he said.

Shares in Domino’s Pizza plunged 12.1% over the week after analysts sliced their profit forecasts for the fast food retailer on the back of the company’s disappointing trading update.

Domino’s chief executive Don Meij revealed slower same-store sales growth and a weaker than expected number of new store openings so far this year during the company’s annual general meeting on Wednesday.