Australia: Financial, healthcare stocks drag shares to near 3-week low

AUSTRALIAN shares extended losses on Tuesday (Aug 23), dragged down by financials and healthcare stocks, but gains in mining and energy stocks on firm commodity prices capped losses.

The S&P/ASX 200 index ended 1.2 per cent lower at 6,961.8 points at the close of trade, hitting its lowest level since Aug 3. The index ended 1 per cent lower on Monday.

Global sentiment was subdued as investors awaited policy cues from US Federal Reserve chair’s speech at the Jackson Hole symposium of central bankers on Friday, while a spike in European energy prices stoked fears of recession.

Financials were the top laggards on the benchmark, falling for the fourth straight session after shedding 2.1 per cent. All of the so-called “Big Four” banks trading in negative territory.

While one cannot pin-point a specific reason, but higher bond yields in the wake of anxieties around Fed’s further rate hikes can be one cause for financials, said Kunal Sawhney, chief executive officer, Kalkine Group.

Additionally, healthcare stocks fell 1.7 per cent, with biomedical giant CSL shedding 2 per cent.

Capping losses, the export centric-miners and mining sub-index edged higher, with sector giants BHP adding 0.3 per cent.

China’s iron ore and steel prices rose after the government’s latest benchmark lending rate cuts boosted sentiment, with the demand outlook also set to improve ahead of the peak season for construction steel.

Similarly, energy and gold stocks rose 1.3 per cent and 0.6 per cent, respectively, buoyed by gains in oil and bullion prices.

SEE ALSO

Australia: Shares slip to near two-week low as financials drag

Energy sector majors Santos and Woodside Energy Group jumped 2.3 per cent and 1.9 per cent, respectively, while Australia’s largest gold miner Newcrest Mining rose 0.7 per cent.

Boral rose more than 2 per cent, even as the cement products maker said its annual underlying profit fell by a third, as it met its guidance.

New Zealand’s benchmark S&P/NZX 50 index ended 1 per cent lower at 11,643.21. REUTERS