Markets wrap: Miners fire, banks sag as ASX eases into the weekend

Friday heralded another narrow loss for the ASX 200, even as mining titans BHP, Rio Tinto and Fortescue Metals continued their meteoric rise.

Equity investors maintained a pensive mood for the first session of the new month with losses for a suite of banking, technology and consumer names consigning the local bourse to a second narrow loss.

The benchmark ASX 200 eased into the weekend with a 5.8 point, or 0.1 per pent, decline to 7493.8, having dipped by a similar amount the previous session.

The index still managed to end the week 1.2 per cent higher – a third week of increases – and is still hovering near multi-month highs after a barnstorming March rally that dragged it 6.4 per cent higher.

The broader All Ordinaries ended the week 3.7 points, or 0.05 per cent, lower at 7785.9 and the Aussie dollar eased to 74.75 US cents at the local close.

BHP lifted closer to its highest on Friday with a 1.2 per cent rise to $52.39, while Rio rose 1 per cent to $120.34 and Fortescue 1.9 per cent to $21.06. Picture: NCA NewsWire / Jeremy Piper

Futures markets had indicated a heftier fall for local stocks after a weak overnight session in the US, although OANDA analyst Jeffrey Halley said quarter-ending flows may have muddied the waters somewhat.

That said, he noted investors remained exposed to a range of competing headwinds – not least developments out of Covid-blighted China, where the economy has been slowing.

“The property developer leverage problem has gone quiet but has not been resolved … its Covid-zero policy is also becoming a bit more challenging, with Shanghai’s lockdowns tightened overnight,” Mr Halley said.

He also said investors were likely waiting for a read on US Non-Farm payrolls data for answers on whether the Federal Reserve will really be forced to engage in an unexpectedly savage cycle of rate hikes.

On top of that, rising interest rates around the world and soaring food and energy prices re-energised by the Ukraine invasion have yet to make their presence fully felt.

The ASX 200 still managed to end the week 1.2 per cent higher – a third week of increases – and is still hovering near multi-month highs after a barnstorming March rally that dragged it 6.4 per cent higher. Picture: NCA NewsWire / Jeremy Piper

“(They) are not going away anytime soon, even if that war ended tomorrow,” Mr Halley wrote.

“The initial data from Asia, encompassing the Ukraine war, is not making comforting reading today.”

On local shores, mining giants BHP, Rio Tinto and Fortescue Metals once again propped the index up after iron ore prices shifted higher again.

BHP lifted closer to its highest on Friday with a 1.2 per cent rise to $52.39, while Rio rose 1 per cent to $120.34 and Fortescue 1.9 per cent to $21.06.

Lithium stocks were also strong.

Mineral Resources surged by 3.6 per cent to $54.59, IGO jumped 2.5 per cent to $14.41, Pilbara Minerals leapt 7.2 per cent to $3.43, Vulcan Energy was 5 per cent ahead at $10.66, Allkem rose 8.5 per cent to $12.40, Liontown Resources rose 3.5 per cent to $1.945 and Novonix finished 3.4 per cent higher at $6.41.

On local shores, mining giants BHP, Rio Tinto and Fortescue Metals once again propped the index up after iron ore prices shifted higher again.

Coal miners Whitehaven, New Hope, Yancoal and Coronado rose but gold stocks were mixed.

Energy companies gained, even as crude oil prices slipped 5.4 per cent to $US107.29. Woodside Petroleum rose 1.8 per cent to $32.68, Santos climbed 2.1 per cent to $7.90 and Origin Energy jumped 2.6 per cent to $6.39.

Losses for Commonwealth Bank, ANZ, NAB and Westpac weighed heavily, with fund managers Magellan, Pendal, Challenger, Platinum and Perpetual also knocked lower.

Elsewhere, Afterpay owner Block Inc dropped another 2.6 per cent to $180.50 and accounting software firm Xero fell 1.7 per cent to $101.04.

There was a 0.7 per cent decline for health giant CSL to $266.28, while Bunnings owner Wesfarmers fell 1.6 per cent to $49.59.

Hefty falls for Pointsbet, Dominos Pizza, Aristocrat Leisure, Harvey Norman, Breville and Premier Investments rounded out a miserable day for consumer discretionaries.

Originally published as Markets wrap: Miners fire, banks sag as ASX eases into the weekend