Fresh gains in oil prices and weak US futures dragged the ASX down from a two-month high on Monday morning to close slightly lower.

The benchmark S&P/ASX 200 declined 0.2 per cent to 7278.5 points, a fall of 15.9 points. It rose as much as 0.8 per cent at the open. The ASX200 is down 2.2 per cent so far this quarter, but is out-performing the S&P500 in the US and the MSCI World Index, which are both down by about 6 per cent.

ASX trading volumes were modest at about 560 million compared to the past two weeks, which saw four days above 1 billion trades due to a “triple witching”, according to Saxo Markets’ Australian market strategist Jessica Amir. This included an S&P index rebalance, fund managers preparing for next week’s end of the March quarter, and expiring options.

“Those three things saw index volumes go through the roof,″⁣ she explained.

Last week the US Federal Reserve also ″⁣mapped out” seven more rate rises.

“We now have certainty over how high rates will go. Markets for now are very bullish, but we are exercising caution.”

Daily volumes would likely decline in coming weeks, she added.

The index rebalance saw AVZ, City Chic, De Grey Mining, and Home Consortium added to the ASX200. De Grey dropped 7.7 per cent on its debut along with other gold miners like Newcrest, down 2.7 per cent, and Northern Star, down 2.4 per cent as gold remained at $US1,927 per ounce due to low volatility, well below recent spikes over $US2,000.

But new lithium player AVZ gained 3.8 per cent to 95¢, while Pilbara Minerals gained 2.5 per cent and Liontown Resources gained 5.4 per cent.

Block Inc depositary receipts enjoyed both the biggest gains and added the most points, rising 9.2 per cent to match gains in the US company. Xero also gained 2.4 per cent, and EML Payments added 6.1 per cent.

Mining giant BHP gained 0.4 per cent, Wesfarmers gained 0.7 per cent after securing court approval for the takeover of pharmacy operator API and Qube Holdings gained 1.3 per cent after announcing an off-market buyback.

Magellan Financial fell 4.3 per cent after Hamish Douglass resigned as chair, and the big banks closed lower, except for Macquarie Group.

Transurban declined 2.4 per cent following an analyst downgrade last week. And Qantas dropped 1 per cent and announced it would start selling non-fungible tokens.

The Aussie dollar retreated from Friday’s four-month high to US73.97¢.

Biggest gains:

• Square 9.2%
• Life360 6.4%
• EML Payments 6.1%
• Liontown Resources 5.4%
• AVZ Minerals 3.8%

Biggest declines:

• De Grey Mining -7.7%
• Clinuvel Pharmacy -4.9%
• Magellan Financial -4.3%
• United Malt Group -3.8%
• Atlas Arteria -3.7%