Australia: Shares fall after rising Covid cases, weak earnings

[BENGALURU] Australian shares fell on Monday, hurt by lockdowns imposed to curb the spread of the Delta variant of Covid-19 as well as downbeat earnings reports from oil and gas company Beach Energy and construction firm LendLease.

The S&P ASX 200 index fell 0.4 per cent to 7,596.3 points by 0102 GMT, with most of the sectors trading in the red. The index closed at a record high on Friday.

Australia's most populous state extended statewide stay-at-home orders over the weekend amid a record jump in daily new Covid-19 infections.

A near 7 per cent drop in Beach Energy after its annual profit fell by more than a fifth further weighed on markets, dragging the energy subindex down 1 per cent.

Beach shares hit their lowest level since March 2020.

Financials were the biggest drag on the benchmark, sliding more than 1 per cent with the "big four" banks losing between 0.9 per cent and 1.4 per cent.

Bendigo and Adelaide Bank shed 8.3 per cent after it announced its annual results and said it would buy fintech firm Ferocia for up to A$116 million (S$116 million).

Shares of Lendlease gave up 5.3 per cent after it reported a lower full-year revenue.

Gold stocks advanced 1.4 per cent by contrast, following a rise in bullion prices.

Heavyweight gold miners Newcrest and Northern Star Resources rose 2 per cent and 1.4 per cent, respectively.

A broader index of miners gained over 1 per cent with Rio Tinto, Fortescue and BHP Group up between 0.2 per cent and 0.6 per cent.

BHP said it was in talks to sell its petroleum business to Australia's top independent gas producer Woodside Petroleum in exchange for shares.

New Zealand's S&P/NZX 50 rose 0.09 per cent to 12,773.97 points.

The country's central bank is this week expected to become the first in Asia-Pacific to raise interest rates since the pandemic began, amid concerns crisis-era stimulus is overheating the economy.

REUTERS