Australia: Shares weighed down by banking, healthcare stocks

[BENGALURU] Australian shares slipped on Monday (Feb 7), as losses in the banking and healthcare sectors offset gains made by energy and mining firms, while travel stocks gained as the country geared up to reopen its borders to vaccinated tourists later in the month.

The benchmark S&P/ASX 200 index closed 0.1 per cent lower at 7,110.80, recouping losses after declining nearly 1 per cent earlier in the day.

Banks slipped 0.4 per cent, with Australia and New Zealand Banking Group losing as much as 5.4 per cent to its lowest in nearly a year after the country's No 4 lender flagged margin pressures and hit from "softer" performance in its markets business.

"Last week provided robust start to February as we head into the reporting season," said Steven Daghlian, a market analyst at CommSec, adding that the financial sector would be in focus this week with major banks coming up with their earning updates.

Healthcare stocks were also among the top drags to the benchmark, losing 1.3 per cent, led by biotech major CSL, which declined 1.6 per cent.

Meanwhile, data showed Australian retail sales surged by a record in the December quarter as the end of coronavirus lockdowns unleashed a wave of pent-up spending, adding to the risk of rate rises.

"Inflation has been strong so far this year and markets are just getting used to the idea of interest rates rising and stimulus being paid back," Steven said.

Among gainers, energy stocks soared 1.6 per cent after worries about supply disruptions pushed crude oil prices to their 7-year high on Friday. Woodside Petroleum and Santos advanced 1.9 per cent and 1.6 per cent, respectively.

Travel stocks jumped after the Australian government said it would fully reopen its borders to all vaccinated visa holders from Feb 21, nearly 2 years after the borders were shut to non-citizens.

Flight Centre Travel Group gained 7.8 per cent and Qantas Airways firmed 4.6 per cent.

Miners climbed 0.8 per cent, with BHP Group and Fortescue advancing 1.2 per cent and 0.9 per cent, respectively.

Markets in New Zealand were closed for a holiday. REUTERS