Well, the S&P/ASX 200 Index (ASX: XJO) has had a fantastic day of trading this Friday. The ASX 200 closed today up a pleasing 1.93% at 7,075 points after some heavy losses earlier in the week. As you might expect, the Telstra Corporation Ltd (ASX: TLS) share price also enjoyed some healthy gains.
Telstra shares ended up finishing the day at $3.93 each. That was up a solid 1.55%.
So what was behind this telco’s hefty rise this Friday?
Telstra share price ends the week on a high note
Well, we can’t say for sure. There were no news or announcements out of Telstra today, save for a routine share buyback notice. But Telstra has been putting one of these out most days in recent weeks, reflecting its ongoing share buyback program. Still, one can’t discount the value of these buybacks, they do theoretically boost shareholder returns.
But perhaps the most plausible explanation for Telstra’s share price moves today is that the telco has just been caught up in the goodwill of the markets. Telstra wasn’t immune to the sell-offs this week. It remains down 1.7% over the past five trading days, falling from $4 a share at the start of the week to $3.93 yesterday. Thus, it’s not too strange to see the company regain some ground today, especially in light of the ASX 200’s massive move upwards.
So that seems to be the most likely explanation as to why Telstra has enjoyed such a strong end to the trading week. No doubt it will make Telstra’s investors pleased as we enter the weekend.