Australian stocks end lower as financials slide on NAB warning

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Australian stocks ended lower in choppy trading on Tuesday, as the National Australia Bank’s margin warning caused a sell-off in the financial sector and offset gains in mining stocks.

The S & P / ASX 200 Index ended the session down 0.24% at 7,434.2, after losing 0.06% on Monday.

Bank stocks which make up about a third of the index fell 1% as the NAB shed 0.8% after reporting continued pressure on lines of credit in fiscal 2022 despite annual profit estimates higher.

This brought the other three major Australian banks down to between 1.2% and 1.6%.

“NAB’s exceptional cash profit failed to impress investors, who may be giving more weight to the bank’s FY22 expectations,” said Kunal Sawhney, CEO of the research firm. in Kalkine Group shares.

Rival Westpac Banking Corp also fueled investor anxiety last week after revealing that it needed to take a big hit in the margin in order to grow its mortgage business.

Energy stocks slipped 1%, as sector heavyweights Woodside Petroleum and Santos fell 1.2% and 1.3% respectively.

The country’s miners, however, rose 1.4% to mark their biggest gain in more than three weeks on high copper prices, which were supported by the passing of a 1,000 infrastructure bill. billion dollars in the United States.

BHP Group, which has the greatest exposure to copper among the nation’s top miners, added 1%. Fortescue Metals Group strengthened 1.8%, while iron ore miner Rio Tinto lost 0.2% as the commodity price fell.

Newcrest Mining, Australia’s largest listed gold producer, lost 1.6% after floating plans to buy Pretium Resources in a deal valuing the Canadian miner at $ 2.80 billion.

Other gold stocks rose 0.7% as bullion prices hit a two-month high, supported by a weakening US dollar and lingering fears of inflation.

New Zealand’s benchmark S & P / NZX 50 reversed initial losses to end up 0.38% to 13,090.58.


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