Australian shares rose for a seventh consecutive week, pushing the ASX above the 5400-point barrier that had long been a stumbling block to the index and bringing the market to levels last seen in August 2015.
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The S&P/ASX200 lifted 0.3 per cent on Friday and 1 per cent for the week to 5405.9 while the broader All Ordinaries gained 0.3 per cent on Friday and 1 per cent for the week to 5469.7.
The benchmark S&P/ASX200 index has now put on 9.8 per cent since the first week of April, amid improving global sentiment, oil prices rising over $US50 per barrel, growing acceptance of further US Federal Reserve rate hikes, and solid local earnings reports.
The rally, the longest stretch of gains since September 2013, has added about 470 points to the index, increasing its market cap by nearly $140 billion.
"Sharemarkets had a good week helped by a combination of improved confidence regarding US growth, increasing signs that the global oil market is rebalancing, and Greece and its creditors agreeing a new debt deal," said AMP Capital chief economist Shane Oliver.
"Combined, this saw most share markets rally for the week and gains in oil and metal prices."
"Of course this could all change if the US dollar takes off big time again, but so far so good," he said.
However, one sector is feeling pain from the improved global sentiment: the traditional safe haven of gold. Gold prices are hovering at a near seven-week low and gold miners were among the biggest losers during the week. Top gold miner Newcrest Mining shed 4.2 per cent over the week to finish at $19.11.
Among the blue-chip miners, BHP Billiton gained 2.7 per cent over the week to $19.37 while Rio Tinto edged down 0.5 per cent to $44.83.
Most of the big four banks gained over the week: ANZ Banking Group 3 per cent to $26.85, Commonwealth Bank 1 per cent to $78.90, and Westpac 2.3 per cent to $30.98. National Australia Bank was flat at $27.30.
Consumer staples was by far the worst performing sector of the week after Wesfarmers reported more than $2 billion in write-downs and losses of $350 million in two key divisions, Target and coal.
Managing director Richard Goyder revealed on Wednesday that Target would plunge $50 million into the red this year –losing $103 million in the June half – after slashing prices on about $200 million in excess stock. He also confirmed that Wesfarmers' coal operations would likely lose about $300 million this year as export coal prices plunged.
Write-downs and restructuring costs, which could be as high as $2.29 billion pre-tax and $2.03 billion post-tax, will wipe out most of Wesfarmers' bottom-line profits this year, while the losses in Target and coal will force Wesfarmers to trim its final dividend.
Wesfarmers lost 3.9 per cent for the week to $41.17 and competitor Woolworths slipped 0.8 per cent to $22.08.
Another poor performer was Flight Centre Travel Group, which reported a shock profit downgrade.
Flight Centre on Monday warned underlying earnings before tax would fall by 2 to 5 per cent from last year's $366 million. It had previously forecasted a 4 to 8 per cent rise, although earlier this month it said meeting the target was "not a formality".
The result led brokers to lower their share price targets and slash earnings forecasts for the next three financial years by around 10 per cent a year. The company pointed to several causes, including political uncertainty related to the federal election campaign in Australia and Britain's Brexit debate, investment in growth, and a weak leisure market in the United States.
The travel group's shares fell by 11 per cent over the week to $32.79.
Programmed Maintenance Services was the week's best performer on the benchmark index, lifting 25.1 per cent to $1.87, after the diversified services group reported a 24.5 per cent increase in underlying net profit.
The ASX-listed shares of UK-based Clydesdale Bank was another top performer after the National Australia Bank spin-off posted a decent earnings report for the six months ending March 31 2016.
The bank posted a profit over double that of the prior corresponding period, coupled with a cost-cutting program, lower bad debts, and a growing loan book. Shares for the week rose 17.1 per cent to $5.54.
