The S&P/ASX 200 fell 0.8% on Friday, erasing the week’s gains and ultimately leaving the index down three points for the week.
After being the hottest sector for most of the year, the materials and mining companies continue to drag the market lower.
On Friday it was all about iron ore with a 6% fall in the iron ore price overnight sending Fortescue Metals Group Limited (ASX: FMG) 11% lower and Rio Tinto Limited (ASX: RIO) down close to 5%.
IRESS deal pulled, AMP’s new low
Iress Ltd (ASX: IRE), owner of the XPLAN system we use at Wattle Partners, fell 11% after Swedish private equity firm EQT pulled out of their takeover bid. However, given the state of markets, I wouldn’t be surprised if someone else comes up with a bid.
AMP Ltd (ASX: AMP) has reached a new low, falling below $1 for the first time in its history as the recovery gets another step harder.
Cimic Group Ltd (ASX: CIM) shares fell 2% despite winning a $265 million contract for construction of the Western Sydney Airport.
ASX weekly movers
The story was similar over the five days with materials falling 3.7%, the biggest detractor, and the more defensive healthcare and IT sectors up 1.7% and 2.2%, respectively.
Altium Limited (ASX: ALU) and Pilbara Minerals Ltd (ASX: PLS) were the top performers over the five days with CSL Limited (ASX: CSL) also gaining 2.5%.
Some older ASX ‘blue chips’ are facing selling pressure with AGL Energy Limited (ASX: AGL) and Brambles Limited (ASX: BXB) both down close to double figures on concerns for growth.
ASX 200
Looking ahead, the ASX 200 is expected to open lower on Monday after all three US benchmarks dropped on Friday.
