Tech stocks, big banks drive Aussie sharemarket rebound as investors await ‘Santa Claus’ rally

Rebounding tech stocks and a surge from three of the big four banks drove the Australian sharemarket higher to close out the trading week.

The benchmark ASX 200 added 40 points or 0.47 per cent to 8,628.20, while the broader All Ordinaries gained 49.60 points or 0.56 per cent to 8,925.30.

Despite the daily gains, the benchmark fell 0.18 per cent for the last five trading days, ending a three-week run of gains.

The Australian dollar slipped against the Greenback and is currently buying 66.06 US cents.

On a positive day trading, eight of the 11 sectors traded higher led by technology, financials and industrials.

WiseTech Global shares leapt 3.15 per cent to $70.18, Xero added 2.30 per cent to $115.64 and Life360 shares climbed 2.55 per cent.

The technology sector as a whole traded 2.06 per cent higher.

Market heavyweight Commonwealth Bank shares jumped 1.77 per cent to $157.75, while Westpac added 1.33 per cent to $38.76 and National Australia Bank closed 0.84 per cent higher to $42.14.

ANZ, which traded higher for most of the day, was the outlier as it slipped 0.03 per cent to $36.03 on the close.

Uranium shares strongly rebounded from Thursday’s fall.

Boss Energy shares soared 9.32 per cent to $1.290, while Paladin leapt 8.89 per cent to $9.06 and Deep Yellow jumped 8.76 per cent to $1.80.

AMP head of investment strategy and chief economist Shane Oliver says the “Santa Claus” rally normally kicks around this time of the month.

“In Australia, over the last 15 years the average gain over the last two weeks of December has been 0.9 per cent with shares up 9 years out of 15,” Dr Oliver said.

“Of course, it’s not guaranteed and Santa didn’t come late last year with a bout of nerves ahead of the incoming Trump Administration – he then came in January this year.”

Dr Oliver says Friday’s lift by the Japanese central bank is a sign the economy remains in an “okay position” calling the next hike is “likely 6-9 months away.”

Also helping to lift the local sharemarket was the Japanese 10-year bond rate soaring to 2 per cent.

The bank of Japan lifted short-term interest rates by 25 basis points to 0.75 per cent, its highest level since 1995.

The move is a sign the BOJ is finally getting on top of its prolonged battle with deflation.

Corporate Travel Management fired its UK and Europe chief executive Michael Healy for breach of his contract obligations.

In a separate announcement the travel retailer also announced it was working with KPMG to finalise its financial year 2025 statement, which it is hoping will be done by February 2026. The business has been in a trading suspension since late August.

Netwealth shares dragged 6.48 per cent to $25.25 following Thursday’s announcement it would payout $100m to more than 1000 victims who invested in the First Guardian Master Fund.

Defence ship builder Austal shares surged a further 5.77 per cent to $6.60 after announcing a second major contract in as many days.