Australia: Banks weigh on shares as ANZ outlook disappoints
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[BENGALURU] Australia shares fell on Monday as Australia and New Zealand Banking Group slumped 5 per cent to touch a near one-year low after flagging a hit to margins and also dragged down stocks of other heavyweight lenders.
The S&P/ASX 200 was down 0.4 per cent at 7,092.5, as of 1137 GMT. The benchmark closed 0.6 per cent higher on Friday.
Banks dropped 1.3 per cent in their worst intraday session since Jan 27, with ANZ slumping after the lender joined Westpac in flagging a hit to margins due to stiff competition in mortgage lending and the central bank's ultra-loose policy settings.
The other lenders among the "Big Four" fell between 0.9 per cent and 1.6 per cent.
Casino operator Star Entertainment shed 0.9 per cent after it forecast a first-half loss and said it would need to remediate employees it had underpaid over six years.
Healthcare stocks retreated 1.1 per cent, led by biotech major CSL sliding 1.2 per cent. Sonic Healthcare and Cochlear dropped about 0.8 per cent each.
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By contrast, Graincorp soared 12.9 per cent after the agribusiness firm forecast an at least 70 per cent growth in full-year profit, driven by global demand for Australian grain and oilseeds.
James Hardie, the world's largest fibre cement maker, jumped 5 per cent after hiking its annual profit outlook for the fourth time, and setting an even higher forecast for the next year.
Energy stocks gained 1 per cent as crude oil prices hit seven-year highs late on Friday on worries about supply disruptions fuelled by frigid US weather and ongoing political turmoil among major world producers.
Woodside Petroleum added 1.3 per cent on Monday, while Santos and Ampol were up 0.5 per cent and 1.2 per cent, respectively.
Technology stocks also remained buoyant and climbed 1.2 per cent, tracking a strong overnight finish on the Nasdaq.
Australia-listed shares of Block Inc rose 3.6 per cent, while local tech names Xero and WiseTech Global added 1.5 per cent and 2.1 per cent, respectively.
Markets in New Zealand were closed for a holiday. REUTERS
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