Australia: Shares close lower as healthcare, tech stocks drag

[BENGALURU] Australian shares ended lower on Monday (Nov 8), as losses in healthcare and tech stocks outpaced gains in miners after BHP Group announced stake sale of its metallurgical coal unit to Stanmore Resources.

The S&P/ASX 200 index fell 0.06 per cent to 7,452.2, breaking a 3-session winning streak. The benchmark added 0.4 per cent on Friday (Nov 5).

Healthcare stocks lost 1.24 per cent after gaining for all 5 trading days last week, with Polynovo and Clinuvel Pharmaceuticals being the top losers on the sector index and the benchmark.

"We're seeing some selling in growth stocks, which is tech and healthcare stocks in our market," said Mathan Somasundaram, chief executive officer at Deep Data Analytics.

"That's because of what's happening with rate hikes and tapering, so in a risk-off market, the high growth stocks tend to be the ones that take most of the pressure," he added.

The Reserve Bank of Australia last week skipped a key bond purchase used to regulate its yield curve, but struck an extremely cautious tone with regards to rate hikes, sparking volatility in the country's debt and currency markets.

Tech stocks also fell 1.72 per cent, dragged by Xero and heavyweight Afterpay, down 4.86 per cent and 0.64 per cent, respectively.

The heavyweight mining sector advanced 0.72 per cent as BHP firmed 0.8 per cent on selling its 80 per cent stake in a Queensland-based metallurgical coal joint venture to Stanmore Resources for up to US$1.35 billion.

Stanmore, though not a part of the benchmark, soared 14.01 per cent to notch its best intraday session since 2016.

Energy stocks added 1.95 per cent with heavyweights Woodside Petroleum and Santos gaining about 3 per cent each, as oil prices firmed on renewed supply concerns.

In one of the biggest deals in the country, Sydney Airport rose 2.79 per cent on saying it would accept a A$23.6 billion (S$23.6 billion) takeover bid from a consortium of infrastructure investors.

Meanwhile, another takeover saga came to an end as Australian Pharmaceutical Industries (API) accepted Wesfarmers' bid for A$763.6 million. API's shares rose 3.70 per cent, while Wesfarmers' fell 0.50 per cent.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index retreated from a 2-week high to close 0.255 per cent down at 13,041.3.

REUTERS