The sharemarket ended the week with a third straight gain today despite a weak banking sector.

The Australian dollar was flat ahead of a US jobs report overnight.

The benchmark S&P/ASX 200 index was up 8.5 points, or 0.19 per cent, at 4541.2 points, while the broader All Ordinaries index rose 14.6 points (0.32 per cent) to 4577.6 points.

RBS Morgans director of equities Bill Chatterton said the market performed reasonably well this week on the back of strong GDP figures and good profit-season reports.

He said an unresolved federal election had left investors with a sense of caution.

“The fact that we haven’t got a solution in the federal election has been an issue – there’s no question about that – from a local perspective and from an international perspective,” Mr Chatterton said.

All major banks finished the day’s trading in negative territory.

ANZ fell 14 cents to $23.29, Commonwealth Bank lost 35c to $51.57, National Australia Bank dropped 1c to $24.10 and Westpac finished 15c lower at $22.50.

The Australian dollar moved sideways in a quiet Asian session today, as traders sat on their hands ahead of a key report on the US job market overnight, Dow Jones Newswires reported.

Australian bonds moved lower on both ends of the curve as a report earlier in the week of robust economic growth in the country continued to affect investors’ risk tolerance.

At 0600 GMT, the Australian dollar was at US90.79 cents, up slightly from US90.75c late yesterday. Against the Japanese yen, the Australian dollar was at Y76.475, from Y76.44.

Should US payrolls surprise to the upside, it’s likely the Australian dollar will rally. For Sue Trinh, senior currency strategist with RBC, such a move would provide a good selling opportunity given the uncertain political climate.

Making market news today, miner Fortescue Metals Group rejected a claim for damages from its third-largest shareholder, Leucadia, in relation to a 2006 loan agreement. Fortescue was down 9c (1.84 per cent) at $4.80.

Orica also lost ground, falling 71c (2.77 per cent) to $24.91.

The two big miners rose – Rio Tinto added 67c (0.92 per cent) to $73.79, while BHP Billiton gained 1c to $38.33.

The retail sector posted mixed results, with Wesfarmers adding 31c (0.93 per cent) to $33.60, while Woolworths fell 9c to $28.38.

Mr Chatterton said Wesfarmers was a company to watch after its strong performance today.

“Their result during the reporting season was extremely good and I think there’s a renewed focus on that company and just how resilient the earnings are,” he said.

“It’s a very good, steady story that will, in a somewhat difficult environment, maintain a lot of growth.”

David Jones added 4c to $5.19, JB Hi-Fi gained 4c to $21.43 and Harvey Norman rose 9c to $3.57.

(Source: TheAustralian.com.au)