Friday trading saw key sectors such as financials and materials decline steadily throughout the day, under pressure from a plunge in the iron ore price, disappointing May retail sales data, steep declines in Chinese bourses as well as fears about the outcome of a Greek referendum on a bailout proposal by its creditors.

The All Ordinaries lost 1 per cent to close on 5528 points, while the ASX200 was down 1.1 per cent to 5538, with all sectors losing value.

The losses were smaller over the week, due to a three-day rally as fears of spiralling Greek contagion proved unfounded and the focus turned to a spate of local takeover offers. But on Friday, investors prefered to turn cautious again and the ASX200 closed down 0.14 per cent for the week.

Bank of America Merrill Lynch market strategist Malcolm Wood said the tumultuous week had enjoyed a relief rally that quietened as the referendum and reporting season neared.

"There is a view that it's time to take money off the table as we go into the season, and particularly the weekend. It appears the market is leaning towards anticipating a 'yes' vote, so a 'no' win would be a negative surprise."

A 'no' win is likely to cause steep declines in equity markets as well as the euro, similar to the multi-percentage points experienced on Monday. In comparison a 'yes' vote is likely to lead to short-term rallies across equity markets.

"In the background to Greece is the fact we're grappling with very divergent monetary policies. We know we're heading into a tightening cycle with the US Fed six countries have cut rates mid June, with makes forecasting more difficult."

The Australian equity market this week has been dominated by another macro trend this time in China where a significant and disorderly sell-offs of A-shares wiped more than $US2 trillion off the market. Coupled with disappointing economic data, it made energy, down 2.38 per cent, the worst performing sharemarket sector of the week, followed by materials, down 1.71 per cent.

Rio Tinto closed the week at $52.50, down by 2.9 per cent while BHP Billiton was down 3.3 per cent to close at $26.59.

The iron ore price also plunged by 6 per cent on Thursday evening, another pressure driving mining stocks prices down. Fortescue Metals Group was down for the week by 8.54 per cent, ending at $1.82.

Utilities, telecoms and financial equities also finished the week down. Telstra closed at $6.13 down by 1.1 per cent. In banks, the Commonwealth Bank finished just up by 0.01 per cent at $86.66 while the ANZ Banking group finished down 1.93 per cent at $32.46; Westpac Banking Corporation down by 0.76 per cent to $32.46 and the National Australia Bank 1.1 per cent to close at $33.71.

The week also saw a series of announcements that drove significant gains and losses for companies across a range of sectors.

The biggest gainer of the week was the struggling Pacific Brands, up 46.9 per cent to 0.47 after a profit expectations upgrade. Fellow retailer Kathmandu Holdings also surged, up by 23.29 per cent to $1.53 on the back of a takeover offer made to the board.

Bluescope Steel was up 25.96 per cent to $3.59 after revised and improved guidance from UBS and Credit Suisse.

Infrastructure group Asciano surged 22.7 per cent to finish the week on $8 on the back of a $9 billion takeover offer from Brookfield Infrastructure Group.

The most significant losses of the week were law firm Slater and Gordon after the announcement of an ASIC probe into its accounting policies, taking shares down 24 per cent to $3.83.

Manufacturing company Bradken also shed value, down 12.1 per cent to $1.34, after news of a $70 million takeover bid by two private equity groups.

IG market strategist Evan Lucas said the market looked set to avoid its annual buy phase that heralds the beginning of results season.

"July is usually a good month but I don't know if that will happen this year. There is a lot of macro risk that is coming home to roost and it appears the local market may finally be taking that seriously."