Christmas comes early for market

The market surged to a near record high this week as concerns of inflation subsided and commodities continued to boom.
It was its fourth consecutive weekly rise and the best run since July.
The ASX 200 benchmark regained the ground it lost in early October to finish the week 0.6 points shy of its September 29 record. It closed at 4671.1, up 42 points on Friday and 96.8 points over the week, while the All Ordinaries rose past the 4600 mark to 4610.6, adding 40.5 points on the day and 93.8 over the week.
"Not a bad week for the traders when gold hits an 18-year high, oil hits a five-year low and the [US index] Nasdaq hits a 52-week high. Looks like the Santa Claus rally has arrived," said broker Marcus Padley from Tolhurst Noall.
Better known as the "January effect" in Australia, the Santa Claus effect referred to the historically good run on the stockmarket in the lead-up to Christmas, Mr Padley said.
"Fund managers, trustees do all their assessments and have new initiatives and a lot of bonuses get put into super funds at this time of year," Mr Padley said. "It is a bit like we all get down to the gym on January 1st. Everyone plans their year on the stockmarket."
The easing oil price has allayed inflationary concerns, bringing fresh confidence to the market.
"People have got over their inflationary paranoia and are getting on with things again," he said.
Andrew Coppin from Bell Potter Securities said with renewed confidence, money was rushing back into the market.
"It has been a massive year for dividend payments to investors. Investors have got a lot of cash and they've been sitting on their hands thinking whether they should put it into the market or not," he said.
Resources stocks and the banks led the way once again.
Rio Tinto hit a record intra-day high on Friday of $62.57, before closing up $1.66 at $62.45.
St George Bank added 25c on Friday and 73c during the week for a $29.37 close. Commonwealth Bank gained 30c on Friday and $1 during the week to close at $42.
Rumours that Westpac boss David Morgan was in talks with IAG head Michael Hawker over a possible joint venture or acquisition pushed the insurer's price up 10c on Friday and 15c over the week to $5.46. Westpac added 1c on Friday but was down 21c over the week to $22.24.