ASX 200 utilities shares led the market last week

Utilities and energy outperformed while the benchmark index weakened a little last week.

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ASX 200 utilities shares led the market sectors last week with a strong 5.14% gain.

Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) fell 0.49% to close at 8,860.1 points.

Market spirits were dampened by news of lower unemployment, which raised the prospect of an interest rate hike this year.

Seven of the 11 market sectors finished in the red.

Let's recap.

Utilities shares led the ASX sectors last week

There are only 21 companies in the ASX 200 utilities sector.

Let's review the performance of the seven largest players by market capitalisation last week.

Origin Energy Ltd (ASX: ORG) shares rose 7.22% to finish the week at $11.73.

The APA Group (ASX: APA) share price rose 3.21% to $8.99.

Mercury NZ Ltd (ASX: MCY) shares were steady at $5.50.

The Meridian Energy Ltd (ASX: MEZ) share price rose 2.29% to $4.91.

The AGL Energy Limited (ASX: AGL) share price lifted 1.85% to $8.82.

Contact Energy Ltd (ASX: CEN) shares fell 2.56% to $8 apiece.

Genesis Energy Ltd (ASX: GNE) shares increased 1.94% to $2.10.

Energy sector also rises strongly

The ASX 200 energy sector was the second best performer, rising 3.56%.

US natural gas futures skyrocketed last week, and WTI crude oil futures rose 1% amid a persistently softer US dollar.

On Friday, analysts at Trading Economics said US natural gas futures were on track for a weekly gain of more than 70%.

That would be the largest increase among records dating back to 1990.

The analysts said:

US natural gas futures surged past $5.53 per MMBtu, approaching levels last seen in December 2022, as extreme cold forecasts boosted demand expectations and raised supply risks.

Temperatures are projected to remain mostly below normal through February 5 …

A severe winter storm is expected to affect roughly two-thirds of the country, increasing residential and commercial consumption and raising the risk of inventory drawdowns.

At the same time, output is around a three-month low, with part of this week's production decline linked to freeze-offs, particularly in southern regions.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sectorChange last week
Utilities (ASX: XUJ)5.14%
Energy (ASX: XEJ)3.56%
Materials (ASX: XMJ)1.58%
Healthcare (ASX: XHJ)0.42%
Information Technology (ASX: XIJ)(0.65%)
Consumer Staples (ASX: XSJ)(1.45%)
Industrials (ASX: XNJ)(1.46%)
Consumer Discretionary (ASX: XDJ)(1.53%)
Communication (ASX: XTJ)(1.56%)
Financials (ASX: XFJ)(1.88%)
A-REIT (ASX: XPJ)(2.01%)

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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