Positive signs push market past 4500

After enduring a dark October, the Australian sharemarket showed a glimmer of its recent confidence with its biggest weekly rise in more than two years - fuelled by strong local profit results and positive US indicators.
The ASX 200 benchmark tiptoed over the 4500 mark this week for the first time in a month, closing at 4519.5 on Friday, up 5.8 points on the day and 136.5 points over the week, the biggest week-long jump since March 2003.
The All Ordinaries rose 7.4 points on the day and 127.8 points over the week, closing at 4468.3.
Westpac was the big news, with its higher than expected profit result and share buyback. The bank's share price surged 64c on Thursday, the last day shareholders had access to tax benefits in the buyback. But despite traders' expectations it continued to climb on Friday, gaining 11c to close at $21.26, up 88c over the week.
"The Westpac results were well received and certainly gave added impetus to the whole sector," said Tony Farnham of Aegis Equities Research.
Babcock & Brown was another financial sector winner, jumping 31c in a day and $2.05 over the week to $17.89.
This week, the US released higher than expected economic data revealing the services sector was expanding and productivity was strong.
Mr Farnham said the Australian market was also showing good momentum. "The Australian economy is not winning races at the moment but it is still in the race," he said.
The market was dealt a blow on Friday by the profit warning from BlueScope Steel amid fears of a global oversupply and a fire at one of its plants. The share price dropped $1.26 to $7.43, down 84c over the week.
Shane Oliver, head of investment strategy at AMP Capital Investors, said the correction in the Australian sharemarket was probably over and he expected the market to climb into next year.
But he foresaw more volatility because of possible interest rate pressures and slowing profit growth.