The weekly wrap: ANZ rallies in weaker bank sector

After a six per cent surge last week, the ASX 200 battled higher this week (ended Thursday). The previous rally high, set in June, offered resistance but ultimately the index has settled 1.7 per cent higher at 4064 this week - just above the previous 4062 high and just below the 4068 high set on Wednesday. From trough to peak, this latest leg of the wider rally has added eight per cent in rapid time. The March low to July high rally is worth 29 per cent.

The four major banks had kept pace with this recent leg of the rally, right up until National Australia Bank rather caught the market off guard with a capital raising on Wednesday.

Overall, the four majors fell on average 2.5 per cent for the week, led by NAB's fall of 6.7 per cent. Last week NAB was the market darling with a stand-out eight per cent surge. The market was also spooked into fearing a similar raising from Westpac, which was down 2.8 per cent, and maybe even Commonwealth Bank, which was down 1.2 per cent, but given ANZ had raised the week before it was left unscathed with a 0.7 per cent rise.