Australia: Shares end lower as energy stocks, miners drag

[BENGALURU] Australian shares ended lower on Tuesday (Feb 15), impacted by energy firms as oil prices fell on profit-taking and weak iron ore prices drove down miners over Ukraine-Russia tensions, although technology stocks helped limit losses.

The S&P/ASX 200 index fell 0.5 per cent to 7,206.90 in its lowest close since Feb 11. The benchmark was up 0.4 per cent on Monday.

"General sentiment is weak and uncertain," said Mathan Somasundaram, chief executive officer of Deep Data Analytics.

"Russia/Ukraine (tensions) remains a major risk, but we may not see this resolve in the next few days." Energy stocks were the top losers on the benchmark, sliding 3.1 per cent to mark their worst day in 3 weeks, as investors took profits from the previous day's oil prices rally.

Major oil and gas explorers Woodside Petroleum and Santos dropped 2.5 per cent and 4.2 per cent, respectively.

Low iron ore prices sent miners 1.2 per cent down as traders fretted over warnings from top consumer China's regulators against recent unusual price moves.

Sector heavyweights Rio Tinto and Fortescue Metals Group slipped 2.3 per cent and 5.1 per cent, respectively.

Rival BHP Group gave up early gains to close 0.3 per cent lower after posting an estimate-beating first-half profit and record dividend payout.

On the contrary, technology stocks advanced 1 per cent with Xero and WiseTech Global rising about 0.3 per cent, while Block's Australian shares jumped 4.2 per cent.

Somasundaram said tech stocks will unwind as bond yields keep climbing, adding that they were also "benefiting from RBA claiming to not raise (interest rates) anytime soon". Minutes of Reserve Bank of Australia's February meeting showed that it is prepared to be patient on policy as wage growth continues to lag even as inflation picks up.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index fell 0.1 per cent to finish at 11,938.32. REUTERS