THE share market capped three consecutive days of rises by hitting a 10-month high, driven by miners, finance stocks and retailers.
The benchmark S&P/ASX200 index ended the week up 42.1 points or 0.87 per cent at 4862.7, while the broader All Ordinaries index was up 39.5 points or 0.80 per cent at 4958.8.
It was the highest close for the S&P/ASX200 since it reached more than 4950 points in April.
On the ASX 24, at 4.15pm (AEDT) the March share price index futures contract was up 63 points at 4846, with nearly 28,000 contracts traded.
Macquarie Private Wealth division director Lucinda Chan described the jump as "amazing", following four days of losses up to Tuesday, when Middle East turmoil contributed to volatility in the market.
"Consumer discretionaries are also having a particularly good run," she told AAP.
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"(Insurer) QBE are not only just buying new businesses but also gave a preliminary outlook, which is quite positive on their earnings about to come.
"The commentary also made with regards to this week's economic data has been quite good, it has not really been negative.
"The Reserve bank statement was quite bullish that came out this week as well, which helps us to delay a so-called rate rise into later on in the year."
The Australian economy is expected to fully recover from the shock of the Queensland floods by the second half of 2011, as coal production recovered, the Reserve Bank of Australia (RBA) said.
Positive economic data from the US, including manufacturing data, had contributed to positive sentiment in Australia, City Index Australia Senior Dealer Jian Wei said.
Resources companies benefitted from high commodity prices.
BHP Billiton was up 35 cents, or 0.76 per cent, at $46.67, Rio Tinto climbed 20 cents to $86.40 and Fortescue Metals rose four cents at $6.67.
Gold miner Newcrest Mining advanced 89 cents, or 2.41 per cent, at $37.75 after gold rose over one per cent in volatile trade overnight.
Insurance up despite floods
Despite the floods and tropical cyclones in Queensland, shares in QBE Insurance Group Ltd jumped by more than seven per cent after its acquisition of Bank of America's Balboa Insurance Company for an upfront payment of $US700 million.
QBE Insurance Group Ltd says its insurance profit margin for 2010 will be lower than previously forecast.
Its shares were up 7.44 per cent, or $1.26, at $18.20, fellow insurer IAG was down two cents at $3.73 and Suncorp climbed 11 cents at $8.56.
Consumer discretionaries benefitted from the RBA's positive outlook with JB Hi-Fi gaining 55 cents, or 2.97 per cent, at $19.08, Woolworths Ltd were up 15 cents at $26.74, Wesfarmers up 33 cents, or 0.99 per cent, at $33.83 and Harvey Norman climbed three cents to $3.04.
Woolworths says it has more than doubled the price of bananas to almost six dollars a kilo because of the substantial crop damage caused by Cyclone Yasi.
The major banks were mostly stronger.
National Australia Bank was up 21 cents at $24.85, ANZ climbed 25 cents at $24.19, Commonwealth Bank was 47 cents higher at $53.06, Macquarie Group were up 64 cents at $41.78.
Westpac lost three cents to $23.25.
The most traded stock by volume was telco Telstra, with 108.73 million securities changing hands at a total value of $309.7 million.
Telstra's share price rose seven cents, or 2.51 per cent, to $2.86.
Preliminary national turnover was 3.10 billion securities worth $6.31 billion, with 723 stocks up, 448 down and 383 unchanged.
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