Australia: Shares slip as Sydney faces worst floods in 60 years; insurers slump
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
[BENGALURU] Australian shares fell on Monday on heavy selling in insurer stocks after flash floods in the east coast caused massive damage to property and stoked expectations of increased claims, while losses among the mining sector also pressured the index.
The S&P/ASX 200 index was down 0.3 per cent at 6,689.5 by 2315 GMT, and set to post its fourth consecutive session of losses. The benchmark closed 0.6% lower on Friday.
Heavy rains battered New South Wales over the weekend, causing the worst flooding in half a century in some areas, authorities said on Sunday, forcing thousands to evacuate and damaging hundreds of houses.
Insurers QBE Insurance, Suncorp and Insurance Australia slumped as much as 2.6 per cent, 3.6 per cent and 4.1 per cent, respectively, after the flash flood spurred expectations of a surge in claims.
IAG said more than 2,100 claims had been lodged with the company by late Sunday covering mainly property damage, and that it was still too soon to predict the costs that would arise from the event.
Broader sentiment was also subdued after Wall Street posted a mixed performance in the previous session, as worries over the recent run-up in US Treasury yields persisted.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
Mining stocks slumped as much as 1 per cent to their lowest in seven weeks amid a drop in Chinese iron ore futures, with BHP Group and rival Rio Tinto losing as much as 0.9 per cent and 1 per cent, respectively.
Bucking the trend, Crown Resorts was the top performer in the index after the casino operator received an A$8.02 billion (S$8.3 billion) buyout proposal from private equity company Blackstone Group.
Energy stocks also helped limit losses in the index, gaining 1.7 per cent to be on track for their best session since March 12 on firmer oil prices. Heavyweights Woodside Petroleum and Santos rose 1.7 per cent and 1.3 per cent, respectively.Australia shares slip as Sydney faces worst floods in 60 years; insurers slump
In New Zealand, the benchmark S&P/NZX 50 index dropped 0.5 per cent to 12,454.17, its lowest in a week.
REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
