Australia: Shares fall on Covid-19 vaccine production halt, post sixth weekly jump

[BENGALURU] Australian shares ended lower on Friday as healthcare stocks dragged after the production of a homegrown Covid-19 vaccine was abruptly cancelled, but posted a sixth straight weekly jump.

The S&P/ASX 200 index fell 0.6 per cent to close at 6,642.6, after slipping as much as 0.8 per cent during the session. It had ended 0.7 per cent lower on Thursday.

The production of the Covid-19 vaccine being developed by University of Queensland and biotech giant CSL was halted after trials showed it could interfere with HIV diagnosis.

CSL shares declined more than 3 per cent in their worst day since Sept 4, while peers Cochlear, Healius and Resmed shed between 2.8 per cent and 3.9 per cent.

On the other hand, energy and gold sub-sectors gained on strength in commodity prices.

Oil and gas stocks saw their best day in over two weeks as crude prices rose 1 per cent, extending a sharp rally overnight that saw Brent rise above US$50 for the first time since March.

Heavyweights Woodside Petroleum, Santos and Beach Energy gained between 2.3 per cent and 4.8 per cent.

Miners hit a fresh high since April 2011, after benchmark iron ore futures on China's Dalian Commodity Exchange soared nearly 10 per cent to break above 1,000 yuan (S$203.84) per tonne for the first time.

Rio Tinto and BHP Group both hit their highest since May 2008.

Nickel and gold miner IGO saw its best day since September 2003 on deal to buy a stake in Tianqi Lithium's Greenbushes mine after returning to trade for the first time since Monday.

Across the Tasman Sea, the New Zealand's benchmark S&P/NZX 50 index rose 0.5 per cent to finish the session at 12,860.37.

For the week, it ended 0.5 per cent higher.

The top percentage gainers were Fisher & Paykel Healthcare Corporation, up 4.5 per cent, followed by Tourism Holdings gaining 3.2 per cent.

REUTERS