ASX Ends Week with Surge Despite Full Week Slump; Ramelius Resources Triumphs Amid Market Volatility


The ASX concluded the trading week on a surge, accumulating an increase of 28.7 points or 0.41 per cent to settle at 6,954.20. Despite the promising closing, the index recorded a slump of 1.34 per cent for the week in its entirety and a decline of 2.01 per cent for the past year.

This is the first instance of the index closing beneath the 7,000 marker since March 24, largely attributable to investor anxieties surrounding an apparent upswing in bond yields. The early trading session recorded a marginal rise due to somewhat of a downturn on Wall Street during the preceding night.

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An analysis of sector performances reveals that financials, escalating by 1.2 per cent, and basic materials, growing by 0.7 per cent, lead the pack on the final trading day of the week. They were followed closely by industrials and consumer non-cyclicals, which grew by 0.3 per cent and 0.2 per cent respectively. However, the energy sector led the losses with a drop of 0.8 per cent, closely followed by the real estate and utilities sectors, each dipping by 0.3 per cent.

A gold mining and production corporation, Ramelius Resources emerged as the triumphant entity of the day, surging by six per cent. De Grey Mining too registered a 3.2 per cent upswing in their share price. However, it wasn’t a bright day for all as Magellan, a fund manager facing considerable difficulties, plummeted by 18 per cent. The company confirmed a $2bn withdrawal by investors in September.

In the commodities sector, there was a significant retreat in the price of oil. Brent crude, the global benchmark, fell nearly two per cent, quoted at $US84.17 per barrel. Markets expert Tom Piotrowski noted this fall to be a relief as it reduces pressure on interest rates. He indicated the US benchmark experiencing a $13 price range in recent days.

CommSec chief economist Craig James, perusing ahead, predicts a severe challenge for financial markets – navigating inflation to the ‘soft landing’ of two-to-three per cent while skirting a recession. He anticipates the coming weeks crucial for tracking businesses announce consistent earnings growth and robust financial health. If the coming US employment data reveals subdued wage growth, reducing job growth, and a slight uptick in unemployment, it might embolden investor confidence in achieving the much-coveted ‘soft landing.’