A change in fortunes for fund manager Magellan has proved a rare bright spot on an Australian share market weighed down by fears of conflict in Ukraine.
Magellan shares closed higher by 18 per cent after a better first-half profit and a discount options offer for investors who stayed after leaders departed. Magellan closed at $21.70.
The ASX closed one per cent lower on Friday and every share category was down after Russian-backed rebels and Kyiv government forces continued trading fire.
European and US leaders have threatened economic sanctions against Russia, which would have major implications for oil supply should troops invade Ukraine.
Utilities were the worst-performing ASX category and dropped four per cent.
This included Origin Energy diving eight per cent to $5.65 a day after bringing forward the closure of Australia’s largest coal-fired power station by three years to 2025.
Healthcare shares fared next worst and lost three per cent. Market giant CSL shed four per cent to $273.97, closing the week higher by six per cent after its first-half earnings.
The benchmark S&P/ASX200 index closed down 74.5 points, or 1.02 per cent, to 7221.7 points.
The ASX200 is about 400 points below its record high in August, 7632.8 points.
The All Ordinaries index closed lower by 72 points, or 0.95 per cent, to 7502.8 points.
The market was higher for the week by 0.06 per cent, making it three consecutive weeks of gains.
Saxo market strategist Jessica Amir noted six of the top 10 performing stocks this week had been gold ones.
Evolution, Northern Star and Silver Lake Resources were all at least 12 per cent higher.
She noted the gold price in the past 24 hours fetched its highest price in eight months of $US1,902.51.
Ms Amir said investors were rushing for safe haven assets as the Ukraine tension increased.
In ASX earnings news, QBE Insurance received no support despite returning to full-year profit.
The company reported a net profit of $US750 million ($A1 billion) for calendar 2021, compared with a $US1.5 billion loss in the previous year.
Investors were unconvinced and sent shares lower by eight per cent to $11.55.
Poultry producer Inghams spooked investors by revealing earnings had recently been hit by coronavirus-affected staff.
The company improved first-half profit by eight per cent to $38.4 million but will pay a lower fully franked interim dividend of 6.5 cents per share.
Inghams was down five per cent to $3.35.
Latitude Group confirmed it will buy the consumer business of buy now, pay later group Humm for $335 million.
The sum includes 150 million Latitude shares and $35 million in cash.
Humm was up three per cent to 89 cents.
Latitude was up two per cent to $2.04.
In banking, Westpac was the only one of the majors to improve and did so by less than half a per cent to $23.53.
The big miners were all lower. Fortescue fared worst and shed three per cent to $19.85. Shares in the Andrew Forrest-founded company lost 13 per cent this week after first-half profit slipped.
Next week, Australian wages data will show whether workers’ pay packets are keeping up with inflation.
Analysts have tipped wages rose by 0.8 per cent for the December quarter.
The Australian dollar was buying 72.04 US cents at 1727 AEDT, higher than 71.82 US cents at Thursday’s close.
ON THE ASX
* The benchmark S&P/ASX200 index closed down 74.5 points, or 1.02 per cent, to 7221.7 points on Friday.
* The All Ordinaries index closed lower by 72 points, or 0.95 per cent, to 7502.8 points.
* At 1727 AEDT, the SPI200 futures index was down one point, or 0.01 per cent, at 7144 points.
CURRENCY SNAPSHOT
One Australian dollar buys:
* 72.04 US cents, from 71.82 cents on Thursday
* 82.97 Japanese yen, from 82.78 yen
* 63.37 Euro cents, from 63.27 cents
* 52.90 British pence, from 52.91 pence
* 107.32 NZ cents, from 107.50 cents.
