Australian shares skid off record high as banks, miners drag down benchmark

Australian shares retreated from record high levels on Monday (Mar 11), with heavyweight mining and banking stocks dragging down the benchmark as investors turn their attention to the central bank’s monetary policy meeting next week.

The S&P/ASX 200 index fell 1.8 per cent to end at 7,704.200, slipping off the all-time peak closing of 7,847.00 on Friday. It also snapped a three-day winning streak and marked its worst day since early July last year.

Banks closed the day 2.2 per cent lower, their worst intraday fall in over 10 months. The “Big Four” lenders lost over 2 per cent each.

Westpac Banking Corp lost around 3.2 per cent, its worst day since May 11, 2023. National Australia Bank shed around 3.1 per cent, its worst day since Nov 14, 2023.

Miners declined 2.7 per cent to their lowest level since October last year. They were the worst drags on the benchmark, as iron ore prices dropped on weak demand from top buyer China.

BHP Group, Rio Tinto, and Fortescue lost between 2.7 per cent and 3.5 per cent, and were the top losers on the sub-index.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Brad Smoling, managing director of Smoling Stockbroking, said “there might be a bit of profit taking at this stage.”

“It is a general sell-off, I think the market is having just a healthy little pull back,” Smoling added.

Investors are awaiting the Reserve Bank of Australia’s (RBA) monetary policy meeting next week, where the central bank is largely expected to keep its cash rate unchanged even as data increasingly indicates the high borrowing rate has had its desired impact.

“We expect the RBA to begin cutting rates in November this year, however there is a chance the RBA begins easing earlier – especially given recent slightly lower inflation and higher unemployment than expected,” analysts at ANZ wrote.

Energy stocks lost 2.1 per cent on concerns over weak China demand as geopolitical concerns continue to linger.

Woodside Energy and Santos shed 2.4 per cent and 2.1 per cent respectively.

Healthcare stocks shed 1.6 per cent, while real estate stocks ended 1.1 per cent lower.

New Zealand’s benchmark S&P/NZX 50 index fell 0.4 per cent to finish the session at 11,873.6700. REUTERS