Market wrap: ASX finishes higher, but is down for the week overall

Financials and basic materials had the biggest gains in Friday’s trade, while energy, real estate, and utilities lead the losses.

The ASX has closed up 28.7 points, or 0.41 per cent, to finish the week on 6,954.20.

However, that is down 1.34 per cent for the week overall, and 2.01 per cent over the past year.

It’s also the first time the index finished below 7000 since March 24.

That result is largely due to investors worrying about a surge in bond yields.

Early trade was up slightly due to some losses on Wall Street overnight.

The ASX closed up 28.7 points on Friday, or 0.41 per cent, to finish the week on 6,954.20. Picture: NCA NewsWire / Monique Harmer

In terms of sectors, financials (up 1.2 per cent) and basic materials (up 0.7 per cent) lead the way on Friday, followed by industrials (up 0.3 per cent) and consumer non-cyclicals (up 0.2 per cent).

Leading the losses was energy (down 0.8 per cent) followed by real estate and utilities, each down 0.3 per cent.

All other sectors had slight losses.

Gold mining and production company Ramelius Resources was the big winner of the day, up six per cent, with the share price of De Grey Mining also enjoying a 3.2 per cent boost.

While embattled fund manager Magellan plunged 18 per cent as it continues to bleed; the company on Friday confirming investors had pulled out a further $2bn in September.

In commodities, CommSec’s Tom Piotrowski said there’s been a “big retreat” in the price of oil, with the global benchmark Brent crude down nearly two per cent to $US84.17 per barrel.

“This comes as a bit of a relief as well because that has underlined the move higher for interest rates,” he told Sky News Australia.

“So in the last couple of days, we’ve seen a $13 price range on the US benchmark; last night down by two per cent or a $1.86 – $2.41.

“So that’s another factor that’s taken the heat out of the interest rate markets.”

Embattled fund manager Magellan plunged 18 per cent after the company on Friday confirmed investors had pulled out a further $2bn in September. Picture: NCA NewsWire / Monique Harmer

Looking ahead, CommSec chief economist Craig James maintains the continuing problem for financial markets will be if central banks can achieve their “soft landing”; getting inflation down to two-to-three per cent while avoiding a recession.

“The coming few weeks will be significant,” Mr James said.

“If companies indicate that earnings are still growing and their finances are strong, then share prices could rebound and resume the upward trend.

“And if [Friday’s US employment] data shows softer wage growth, an easing of job growth and a modest lift in the jobless rate then investors will have more confidence that the fabled ‘soft landing’ can be achieved.”

Originally published as Market wrap: ASX finishes higher, but is down for the week overall