The S&P/ASX 200 spent the week in the red, losing -63.7 points (-1.16%) to finish the weeks trade at 5,444 points.
The early stages of the week saw the market drift lower as investors took profits, locking in gains from the recent market rally. Thursday then saw the market surge 1.1% on the back of an 8% overnight rally in the oil price, only to then reverse the gains during Fridays trade. The price of Brent rose by a staggering 13.13% during the week to close at $53.27 per barrel at 4pm on Friday. Santos Limited (ASX:STO) was the main beneficiary of the rise, climbing 18c over the week to close at $4.37 (+4.3%). Mining giants BHP Billiton (ASX:BHP) and Rio Tinto (ASX:RIO) both lost ground during the week, closing at $25.02 and $58.04 respectively.
The big four banks were mixed in their weekly movement with Commonwealth Bank of Australia (ASX:CBA) gaining 0.55% over the period, ending the week up 43c at $78.60. Westpac Banking Corp (ASX:WBC) lost 19c (-0.6%) and ANZ Banking Group Limited (ASX: ANZ) gained 18c (0.64%), closing at $31.34 and $28.46 respectively.
The worst news of the week came from infant formula maker Bellamy’s Australia Limited (ASX:BAL) whose share fell a staggering 43.53% during Fridays trade. The company announced that they were facing regulatory risks in China, its largest growth market, and that they expect a temporary hit to sales volumes. Investors had been optimistic on Bellamy’s because its organic healthy infant formula brands cater well to China’s rising middle class, with the company shares rising from approximately $1.50 two years ago and trading as high at $15.40 in August 2016. Bellamy’s closed Fridays trade at $6.85.
Another company whose share price suffered a large hit over the week was Vocus Communications Limited (ASX:VOC), which dropped by 25.75% after its revenue forecast missed expectations. Investors expected the recent acquisition of fiber-optical-cable owner Nextgen Networks to contribute more to earnings and exited the stock upon the forecast. Vocus closed the week at $4.21 per share.
In more positive news, Aurora Labs Limited (ASX:A3D) continued what was without a doubt the hottest IPO of 2016 rising from $2.50 at Friday’s close last week, to a high of $5.39 on Wednesday. The high of $5.39 represented a 2,695% gain from the company’s IPO price of 20c back in August.
Aurora is industrial technology and innovation company that specializes in the development of 3D metal printers. The company’s shares were sold off during the latter stages of the week, closing at $3.08 per share.