Banks drive Australia shares higher; investors assess corporate earnings

Published on 08/28/2025 at 02:51 am EDT

• Financials gain 1.1%
• South32 falls 7.2%
• Qantas notches record closing high

(Reuters) - Australian shares ended slightly higher on Thursday as gains in banks outweighed losses in commodity stocks, while traders digested a slew of corporate results as Australia's earnings season nears its end.
The S&P/ASX 200 index closed 0.2% higher at 8,980 points. The benchmark ended 0.3% higher on Wednesday.
The heavyweight financial sector ended up 1.1%, led by the 'Big Four' banks, as investors increased exposure to the relatively stable sector.
Westpac, ANZ and Commonwealth Bank of Australia advanced between 1.3% and 2.1%, while National Australia Bank added 2.4% after appointing a new chief financial officer.
"Based on the monthly performance, investors are rotating into defensives and income plays, with flows favouring discretionary, real estate and financials - sectors showing more resilient outlooks," said Hebe Chen, a market analyst with Vantage Markets.
Consumer discretionary stocks rose 0.8%, while real estate stocks advanced 1%.
On the other hand, energy stocks tumbled 2.4%, tracking weaker oil prices amid expectations for lower U.S. fuel demand.
Mining and gold stocks also dropped 0.7% and 0.5%, respectively, after investors took profits.
"Traders were just keen to lock in some profit to take advantage of the higher moves in underlying prices such as iron ore and gold," said Tim Waterer, chief market analyst with KCM Trade.
Markets also digested a slew of corporate earnings, including diversified miner South32, whose shares plummeted 7.2% after earnings for the year missed estimates.
Meanwhile, Australian carrier Qantas jumped 9.1% to a record closing high after reporting higher annual profit.
Healthcare stocks ended 1.7% lower after Ramsay Health Care plunged 10.5% on profit drop, while Telix Pharmaceuticals fell 18.8% following a drug application hurdle.
New Zealand's benchmark S&P/NZX 50 index ended 0.3% higher at 12,903.08 points.
 (Reporting by Nichiket Sunil in Bengaluru; Editing by Eileen Soreng) 

Sumber : Reuters