Australian shares wipe out early gains as banks drag
Australian shares gave up early gains to close lower on Friday, as losses in heavyweight financials offset a rise in mining stocks, but the benchmark still posted a weekly gain.
The S&P/ASX 200 index ended 0.4% lower to finish the session at 8,514.2 points after rising as much as 0.6% in the early hours of trade.
The benchmark gained 0.1% for the week and was poised to log its third consecutive monthly gain.
Banking stocks fell 1.5% after hitting a fresh peak for the fourth straight session, with the 'big four' banks losing between 1.6% and 2.8%. However, the sub-index marked its strongest week in nearly a month.
'Financials have taken a breather after a strong run. This looks like a classic case of profit-taking rather than a shift in fundamentals — banks remain well-supported by stable credit conditions and a resilient domestic economy,' said Hebe Chen, market analyst at Vantage Markets.
Healthcare stocks also fell 1.4%, with biotech firm CSL losing 2%. The sub-index lost 1.5% for the week, its weakest since early May.
Australian shares close lower as tech stocks weigh
'As appetite for defensives fades and investors rotate into more cyclical names, CSL's lackluster performance continues to deter any meaningful dip-buying,' Chen said.
Real estate stocks fell 1.2%, while the industrial sector was down 0.7%.
Bucking the trend, heavyweight mining stocks rose 2.5% and posted their strongest session since April 10. The sub-index rose 0.3% for the week, its best weekly performance in more than a month.
Dalian iron ore futures rose and were poised for a weekly gain on falling iron ore and steel inventories.
Sector giant BHP rose 3.9%, closing at its highest level since June 12. Rio Tinto and Fortescue added 4.6% and 3.6%, respectively, on the day.
New Zealand's benchmark S&P/NZX 50 index closed the session 0.8% higher at 12,583.59 points, extending gains for the week.
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Australian shares wipe out early gains as banks drag
Australian shares gave up early gains to close lower on Friday, as losses in heavyweight financials offset a rise in mining stocks, but the benchmark still posted a weekly gain. The S&P/ASX 200 index ended 0.4% lower to finish the session at 8,514.2 points after rising as much as 0.6% in the early hours of trade. The benchmark gained 0.1% for the week and was poised to log its third consecutive monthly gain. Banking stocks fell 1.5% after hitting a fresh peak for the fourth straight session, with the 'big four' banks losing between 1.6% and 2.8%. However, the sub-index marked its strongest week in nearly a month. 'Financials have taken a breather after a strong run. This looks like a classic case of profit-taking rather than a shift in fundamentals — banks remain well-supported by stable credit conditions and a resilient domestic economy,' said Hebe Chen, market analyst at Vantage Markets. Healthcare stocks also fell 1.4%, with biotech firm CSL losing 2%. The sub-index lost 1.5% for the week, its weakest since early May. Australian shares close lower as tech stocks weigh 'As appetite for defensives fades and investors rotate into more cyclical names, CSL's lackluster performance continues to deter any meaningful dip-buying,' Chen said. Real estate stocks fell 1.2%, while the industrial sector was down 0.7%. Bucking the trend, heavyweight mining stocks rose 2.5% and posted their strongest session since April 10. The sub-index rose 0.3% for the week, its best weekly performance in more than a month. Dalian iron ore futures rose and were poised for a weekly gain on falling iron ore and steel inventories. Sector giant BHP rose 3.9%, closing at its highest level since June 12. Rio Tinto and Fortescue added 4.6% and 3.6%, respectively, on the day. New Zealand's benchmark S&P/NZX 50 index closed the session 0.8% higher at 12,583.59 points, extending gains for the week.
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