Australia: Tech, energy losses drive shares lower

[BENGALURU] Australian shares closed lower on Friday as tech and energy stocks fell, and power retailer Origin Energy dropped over 7 per cent after warning of a steep fall in earnings for the next two financial years.

The S&P/ASX 200 index ended 0.3 per cent lower at 7,392.6 points, and was flat for the week. The index, however, gained more than 1 per cent in July, marking its 10th straight monthly advance and the longest monthly winning streak since 2007.

"The monthly gain exhibits a good track record for Aussie shares ... over the week we have remained pretty steady despite the spiking virus cases as participants seem to be tracking Wall Street's recent performance," said Steven Daghlian, a market analyst at CommSec.

"There is also the chance of the domestic central bank keeping bond purchases steady or even potentially turning it up as a symbolic gesture of continued support at the next policy meet," he added.

The country's largest city, Sydney, reported a slight fall in locally acquired coronavirus cases on Friday, amid a further tightening of restrictions.

Tech stocks dropped 2.5 per cent, the most among subindices, with buy-now-pay-later company Afterpay falling more than 5 per cent.

Energy stocks lost more than 1 per cent as oil prices slipped, with oil and gas explorers Santos and Oil Search down 1.4 per cent and 1.3 per cent, respectively.

Origin Energy saw its worst session in over a year after it flagged a A$2.25 billion (S$2.25 billion) charge in fiscal 2021 and a steep drop in earnings in its energy markets business.

Healthcare stocks were also lower, with heavyweight CSL down 0.9 per cent.

New Zealand's S&P/NZX 50 index dropped over 1 per cent on Friday, to fall 1.1 per cent for the week. The benchmark index also lost 0.5 per cent over the month of July.

REUTERS