The Australian share market has finished higher, closing out August basically where it started despite a dreadful opening to the month.
The benchmark S&P/ASX 200 index on Friday rose 46.8 points, or 0.58 per cent, to 8,091.9, its highest finish since its all-time closing high on August 1.
The ASX200 rose 0.85 per cent for the past five days of trading, its third straight week of gains following a sharp 2.1 per cent decline for the week ending August 9.
It finished the month down less than half a point from where it began as earning season drew to a close.
The broader All Ordinaries on Friday gained 53.1 points, or 0.64 per cent, to 8,316.7.
AMP chief economist Shane Oliver said there had been a "great comeback" for the Australian market given its 5.7 per cent slump early in the month.
However, shares remained at high risk of further falls and volatility over the next few months, Dr Oliver said.
Valuations remained stretched, investment sentiment was still relatively upbeat, which is negative from a contrarian perspective, the AI boom is looking shaky, recession risk remains real, geopolitical risk is high particularly around the US election and the Middle East and September tended to be the weakest month of the year for shares.
Dr Oliver said the results of earnings season had been "not great, but okay", with fewer surprises to the upside and the downside than normal.
The signal from consumer stocks was mixed, but not as poorly as feared, with downside surprises mainly concentrated in industrials, telcos and utilities, he said.
Eight of the ASX's 11 sectors finished higher on Friday, with consumer staples flat, health care down marginally and consumer discretionary shares dipping 0.5 per cent.
The industrial sector was the biggest gainer, climbing 1.7 per cent as Qantas rose 5.3 per cent to a 14-month high of $6.71 and Downer EDI soared 16.7 per cent to a two-year high of $5.59 after a well-received earnings report.
The integrated services company said its full-year earnings were up 34 per cent to $384.1 million and its utilities business had returned to profitability after being accounting irregularities marred its results over several years.
On the flip side, Ramsay Health Care dropped 6.8 per cent to $41.55 despite the private hospital operator announcing it had nearly tripled its net profit, to $888.7 million.
Margin recovery had been slower by cost inflation affecting the private hospital industrial, chief executive Craig McNally said.
Harvey Norman dropped 6.3 per cent to $4.58 after the retail giant posted a $352.5 profit, down 35 per cent from last year.
"We'd hope to do a lot better this year. Overall, in a difficult climate, it's a reasonable result, but I'm not excited about it," chairman Gerry Harvey told AAP.
All of the big four banks finished higher, with ANZ up 1.2 per cent to $30.40, NAB rising 0.6 per cent to $38.17 and Westpac and CBA both climbing 0.5 per cent, to $31.24 and $139.50.
In the heavyweight mining sector, BHP rose 0.6 per cent to $40.77 and Rio Tinto climbed 1.4 per cent to $111.55, while Fortescue dropped 1.6 per cent to $18.27.
The Australian dollar was buying 68.02 US cents, from 68.04 US cents at Thursday's close.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Friday up 46.8 points, or 0.58 per cent, at 8,091.9.
* The All Ordinaries gained 53.1 points, or 0.64 per cent, at 8,316.7.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 68.02 US cents, from 68.04 US cents at Thursday's ASX close
* 98.66 Japanese yen, from 98.38 Japanese yen
* 61.41 euro cents, from 61.14 euro cents
* 51.64 British pence, from 51.47 pence
* 108.77 NZ cents, from 108.31 NZ cents
