ASX defies heavy volatility to end week in the black

The market has risen in spite of strong headwinds, but don't expect smooth sailing any time soon.

Ryan Newman (TMFNewmy)

Ryan Newman (CFA) is the Director of Research of The Motley Fool Australia, and Portfolio Manager for the Pro and North Star services. Ryan’s interest in investing and stocks began at a young. His journey with The Motley Fool started first as a member but when the company first came to Australia he joined the team as one of our writers. Recognising his investing talent and passion, it wasn’t long before he was approached to join the investing team as a research analyst on Pro. Ryan is passionate about learning and continual development. He earned his Chartered Financial Analyst (CFA) designation in 2022, and has completed his Bachelor of Accounting and his Graduate Certificate of Corporate Finance. Ryan loves spending time with his young family as well as non-fiction reading, catching the latest movies and following his sports team, the St Kilda Saints (AFL).

Published March 30, 2014 9:08 am AEDT

It was another week of heavy volatility for the Australian stock market with the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) rising just 0.5% as tensions between Russia and the Ukraine and a strengthening Aussie dollar continued to weigh on investor sentiment.

Also weighing on the market's confidence were signs of further contraction in Chinese manufacturing activity which were highlighted in the release of the HSBC and Markit Economics Flash PMI reading for China which measured at 48.1 for March, where a result under 50 suggests contraction.

Although the Aussie dollar jumped to a fresh four-month high, fetching nearly US93c on Friday, it was Australia's major banks and miners that saw the bourse end in the black for the five trading days. The banks posted gains between 1.8% and 2.5% while BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) jumped 1.6% and 3.1% respectively. Particularly impressive was Fortescue Metals Group Limited (ASX: FMG) as the iron ore miner rose 7.2%.

Here are some of the other big winners for the week:

Arrium Limited (ASX: ARI) posted a gain of 7.4%
Greencross Limited (ASX: GXL) rose 6%
Dick Smith Holdings Ltd (ASX: DSH) jumped 8.3%
G8 Education Limited (ASX: GEM) had another outstanding week, rising 6.1%
Kathmandu Holdings Ltd (ASX: KMD) soared 14.5%
Maverick Drilling and Exploration Ltd (ASX: MAD) returned 8.3%
Mount Gibson Iron Limited (ASX: MGX) climbed 12.9%
Premier Investments Limited (ASX: PMV) skyrocketed 20.7%
TPG Telecom Ltd (ASX: TPM) continues to astound, having risen another 20.5%

Meanwhile, some other companies were not so lucky:

Ausdrill Limited (ASX: ASL) sunk 12.8%
Beadell Resources Ltd (ASX: BDR) dropped 9.2%
iProperty Group Ltd (ASX: IPP) conceded 22.1%
Kingsgate Consolidated Limited (ASX: KCN) fell 12%
Newcrest Mining Limited (ASX: NCM) depreciated 7.1%
Northern Star Resources Ltd (ASX: NST) crumbled 10.2%
St. Barbara Limited (ASX: SBM) tumbled 27%

Foolish takeaway

The volatility currently shaking equity markets can be incredibly difficult to take, particularly when some of your largest holdings are taking a beating, however, it is important to wait it out and not become one of those investors selling in a state of panic.

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