ASX200 Fades After Initial Gains, Finishes Up 0.1%

The S&P/ASX200 experienced a rollercoaster of a day on Friday, with significant gains at lunchtime fading into a modest close. The benchmark index finished the day up 0.1%, while the broader Ordinaries gained 0.14%. This price action mirrored the previous day’s sharp losses and subsequent recovery.

For the week, the ASX200 lost 0.4%, but finished June up 0.9%. Despite a 1.6% loss for the quarter, the index is still up 2.3% in 2024. The financial year closed with a 7.8% gain, outperforming savings accounts but underperforming global indexes.

The market’s performance was influenced by various factors, including concerns about China, potential rate hikes, and the upcoming US inflation data release. End-of-quarter repositioning may have also played a role in the unusual price action.

Five of the ASX’s 11 sectors gained ground on Friday, with notable movements in the financial and mining sectors. Suncorp rose 3.6%, while IAG added 7.2% following significant announcements. In contrast, the heavyweight mining sector finished lower, with losses for iron ore giants outweighing gains by gold miners.

Overall, the market showed resilience amidst uncertainty, with traders navigating a complex landscape. As we move into the next financial year, experts predict more constrained and volatile returns. It will be interesting to see how the market evolves in the coming months.