For the week, the benchmark S&P/ASX200 rose just 4.8 points, or 0.1 per cent, to 5318.2, but the broader All Ordinaries slipped 1.2 points to 5315.4.

On Friday, the ASX200 lifted 0.4 per cent, or 20.5 points, while the All Ordinaries added 16.9 points, or 0.3 per cent.

Financials was one of the strongest performing sectors for the week, rising 1.1 per cent. Telecommunications was the leader, jumping 1.3 per cent.

The big banks have been a large drag on the sharemarket over the past few weeks, with all four entering a technical correction – falling more than 10 per cent from their recent peaks.

"The banks were historically quite highly priced compared to their overseas peers, and there has been a lot of speculation in the pressure regarding new capital requirements, the RBA stepping in to cool the housing market, which has taken some of the gloss of the banks," BBY private client adviser Henry Jennings said.

Among the big four banks, Commonwealth Bank finished the week 1.9 per cent higher at $76.65, while ANZ Banking Group lifted 2.1 per cent to $31.64. National Australia Bank gained 0.8 per cent to $32.97 and Westpac Corporation rose 2.2 per cent to $32.59.

Investors were still reeling from a slump in the equities market over the past month caused by a number of different factors culminating at once, Mr Jennings said.

"We've seen the Aussie dollar weakening and some overseas guys taking their money back home," Mr Jennings said.

The price of iron ore recovered marginally during the week, rising 1.2 per cent to $US79.60 per tonne.

However, miners were not spared a sell-off. Atlas Iron plunged 20.2 per cent to 37.5¢, BC Iron fell 11 per cent to $1.54, Arrium shed 5.3 per cent to 35.5¢ and Mount Gibson lost 13.4 per cent to 48.5¢.

The big miners were also hit, BHP Billiton dropped 2.1 per cent to $33.45 and Rio Tinto finished the week 2.2 per cent lower at $58.80.

Fortescue Metals hit a more than 12-month low during the week of $3.40 before finishing 2.5 per cent down at $3.45.

Materials suffered the biggest weekly loss among the market's sectors, slumping 1.9 per cent.

Despite the volatility, there was still hope for investors, Platypus Asset Management chief investment officer Don Williams said.

"You still have reason to believe that the Australian economy is on a better path, but it's gradual. We're sticking to the view that it's the beginnings of a secular bull market, but it's a pretty slow grind," Mr Williams said.

Companies with exposure to overseas earnings represented an interesting opportunity for investors, Mr Williams said.

"We still like the consumer discretionary area in the right names. We don't have any traditional retailers, but we own companies like REA, Flight Centre and Domino's," Mr Williams said.

For the week, REA lost 1.8 per cent to $42.60, Flight Centre dipped 1.2 per cent to $42.51 and Domino's Pizza jumped 1.6 per cent to $27.

"Companies that can successfully move offshore are much more appealing to us than companies that are landlocked in Australia," Mr Williams said.

"The real problem in Australia right now is a nominal GDP problem. The real growth rate is pretty low and there's basically no inflation expect in residential housing."

In corporate news, M2 Telecommunications, owner of internet provider Dodo, announced it would expand into internet televisions. M2 will offer basic Fetch TV free with its $39.90 ADSL plan in metropolitan areas. M2 shares finished the week flat at $17.75.

News Corporation announced the $US950 million acquisition of US property website Move Inc. The company will take an 80 per cent stake, while the 61.6 per cent News Corp-owned Real Estate Australia will hold the remaining 20 per cent.

Local News Corp shares lost 4.1 per cent during the week to finish at $17.92.

The Australian Competition and Consumer Commission gave the green light for global online travel company Expedia's $703 million takeover of Wotif. Wotif shares added 6.8 per cent to $3.30.