Shares rebound from heavy losses The Australian share market reversed some of Thursday's substantial losses, the biggest one-day fall since May, closing above 5000 points to end the week on a positive note. The S&P/ASX200 rose 0.8 per cent on Friday, up 38 points to 5018.1, while the broader All Ords rose by 38.1 points, or 0.8 per cent, to 5036.7 points. ""Overall it [Thursday's losses] seemed to be a slight hiccup,"" CommSec analyst Steven Daghlian said. ""The markets back up and both the ASX and the All Ords have crept back up above the 5000-point mark and that's a good sign."" Deutsche Bank's head of research sales, Glenn Morgan, said Thursday's heavy losses were an overreaction to what was said in the US Federal Reserve minutes about bond purchases. ""The outlook was probably more balanced than people thought on reflection,"" Mr Morgan said. A fairly optimistic tone set by Reserve Bank governor Glenn Stevens in a statement to the House of Representatives Standing Committee on Economics on Friday also lifted sentiment, with some economists speculating that the interest rates easing cycle could be coming to an end. All the sectors ended higher on Friday. Gold rose 3.5 per cent, financials were up 0.8 per cent while materials lifted by 0.2 per cent. The big four banks - ANZ, Commonwealth Bank, National Australia Bank and Westpac - all saw gains, with both Westpac and NAB closer 1.3 per cent higher. Mining giants BHP Billiton and Rio Tinto finished slightly lower by 0.8 per cent and 0.9 per cent respectively, although Newcrest Mining rose by 1.55 per cent. Mr Morgan said the reporting season had turned the mood on the markets more positive, after initial fears at the start of the year that the rally would not been backed up by companies" earnings. ""There have been a few disappointments but our analysts have been upgrading forecasts for the next two years during reporting season, which is something which we haven't seen for quite a while,"" he said. ""There's still be a bit of [price-earnings] expansion, but I think we've found a floor in earnings, companies have done a terrific job on costs and if we get a better macroeconomic backdrop, the leverage to the upside could be quite large."" Telstra added six cents on Friday to $4.56 and Woolworths jumped 42 cents, or 1.24 per cent, to $34.27. Oil and gas producer Santos impressed investors enough with a positive outlook for cashflow from new liquefied natural gas projects to overshadow a fall in net profit, closing up 15 cents at $12.05. National turnover was 1.88 billion securities worth $7.54 billion.