Australia: Shares record worst week since January as miners drag

[BENGALURU] Australian shares finished flat on Friday after a tumultuous week as declines in gold stocks and miners evened out gains in consumer and real estate firms.

The S&P/ASX 200 index edged down 0.05 per cent to 7,460.9 points at the close. For the week, it lost 2.2 per cent, its worst week since Jan 29.

Australia's miners sank 11.3 per cent in the week, dragged lower by losses in BHP Group.

The world's biggest listed miner posted a weekly loss of 16 per cent, its worst week since mid-March 2020 as investors digested company's decision to end its UK dual listing and hive off its petroleum business to Woodside in a nil-premium merger.

Gold stocks fell 2 per cent during the session, the top drag on the ASX 200, hurt by losses in Newcrest Mining, down 3.3 per cent, and St Barbara, losing 3.1 per cent.

Among individual stocks, Treasury Wines gained nearly 7.8 per cent during the week, buoying the consumer index which closed about 3 per cent higher.

Real Estate firms lent weight, rising 0.8 per cent in the week. On Friday, the index ended 0.9 per cent higher, led by gains in National Storage which was up 3.1 per cent.

Australia's third wave of Covid-19 infections, centred on Sydney, has pushed the world's 13th-largest economy to the brink of its second recession in as many years.

Brad Smoling, managing director of Smoling Stockbroking, said while the market has become desensitised to virus woes, attention is now turning to US Federal Reserve's tapering talks.

Federal Reserve officials said on Thursday their employment benchmark for decreasing support for the economy could be reached this year.

"Australia's central bank is also falling into line with the Federal Reserve," Brad added.

New Zealand's benchmark S&P/NZX 50 index ends 1.4 per cent higher to finish the session at 12,940.49, after its central bank delayed a rate hike, shifting gears as the country went into a snap Covid-19 lockdown.

REUTERS