Australia: Casino firm Star drags stocks lower on regulatory fears

[BENGALURU] Australian shares ended lower on Monday as Star Entertainment Group fell by more than a fifth on media reports that the casino operator failed to do enough to prevent money laundering and fraud at its resorts.

Crown Resorts, already under intense scrutiny for its own failings, also fell over 3 per cent, highlighting investor fears of drawn-out regulatory scrutiny for the sector.

The benchmark ASX 200 index closed 0.3 per cent lower at 7,299.8, although heavyweight miners registered strong gains on the back of rising iron ore prices.

Fortescue Metals Group added more than 5 per cent, as investors picked up the stock that has been hovering around its lowest levels in more than a year.

The company said on Monday it plans to build the world's biggest electrolyser factory, looking to jump-start the green hydrogen industry in Australia.

BHP Group and Rio Tinto gained 0.9 per cent and 1.9 per cent, respectively.

Star Entertainment Group shares slid 22.9 per cent, their sharpest plunge since March last year, after media outlets detailed a confidential review accusing the casino operator of failing to rein in money laundering and fraud.

Given the scrutiny Crown has faced, Jefferies said this is unhelpful to Star and could weigh on investors ahead of its own casino licence renewals.

Tech and healthcare stocks also fell, with Afterpay dropping 4.2 per cent.

On the flip side, fuel supplier Ampol climbed 2.9 per cent after Z Energy backed its NZ$1.97 billion (S$1.85 billion) takeover bid for the New Zealand firm, whose shares rose nearly 7 per cent on the news.

New Zealand shares fell 0.5 per cent to 13,019.37 - their fifth straight session in the red.

Auckland Airport and Air New Zealand fell more than 1 per cent each, while top construction firm Fletcher Building dropped 1.4 per cent.

REUTERS