Australia: Omicron, Magellan Financial drag shares lower

[BENGALURU] Australian shares settled lower on Monday (Dec 20) as energy stocks fell on concerns over oil demand outlook, while fund manager Magellan Financial Group slumped to its worst session on losing a major client.

The S&P/ASX 200 index slipped 0.16 per cent to 7,292.2, closing lower for the fourth session in 5.

Equity markets across Asia and crude prices sank as surging Omicron Covid-19 cases prompted tighter restrictions in Europe, threatening to disrupt global economic activity once again.

"Markets are very cautious ahead of the Christmas break, with concerns about the impact of the Omicron strain," analysts at National Australia Bank said in a note.

"More discontinuity in supply chains from Omicron could add to inflation concerns."

Energy stocks dropped 3.4 per cent in their worst session in nearly a month and were the top losers on the benchmark index, as oil prices slumped by more than 2 per cent.

Oil investor Washington H Soul Pattinson was the top loser on the sub-index, falling 6.1 per cent, while gas producer Santos dropped 4.8 per cent.

Magellan Financial Group plunged 32.9 per cent after disclosing it had lost its largest client St James's Place, which accounted for around 12 per cent of the company's annual revenue.

The financial index lost 0.8 per cent, with 3 of the "Big Four" banks down between 0.1 per cent and 1.4 per cent.

Miners rose 0.1 per cent, with Rio Tinto adding 0.2 per cent after the iron ore behemoth appointed a new chairperson.

Dominic Barton, Canada's outgoing ambassador to China, will replace Rio's previous chair Simon Thompson, who stepped down to take responsibility for the company's destruction of ancient rock shelters in Australia.

Among other losers, construction firm CIMIC Group shed 15.4 per cent before trading was paused by the stock exchange.

After reports that the company had not paid wages and benefits to more than 100 employees, CIMIC said the employees were under the care of another company and it was working to ensure that they were compensated. Shares closed 13.4 per cent lower after trade resumed.

New Zealand's benchmark S&P/NZX 50 index finished 0.38 per cent higher at 12,766.45.

REUTERS