Australian shares end sharply lower as banks drag

Published on 09/01/2025 at 03:05 am EDT
(Updates to close)

• ASX 200 ends lower after strongest August since 2009
• Banks lead losses; CBA, BHP, Rio fall
• Fortescue slips 4% on ex-dividend trade
• Gold stocks shine

(Reuters) - The Australian benchmark index closed sharply lower on Monday as investors locked in profits after a stellar August when it settled near record levels on multiple sessions, while banks dragged on the day.
The S&P/ASX 200 index slipped 0.5% to 8,927.7 points, marking its weakest session since August 22.
It rose 2.6% last month, the strongest August since 2009, lifted by corporate earnings and easing borrowing costs.
"September is seasonally a weak month as we come out of reporting season with some profit taking (and) into year-end of AGMs where we will get trading updates," said Luke Winchester, portfolio manager, Merewether Capital.
Financials fell 0.8% on Monday, extending a 0.2% loss from mid-day.
The Reserve Bank of Australia, having cut rates three times this year, is expected to hold steady at its late-September meeting, with market swaps pricing in over an 80% chance of no change.
"Australian inflation remains sticky and there is no sign of a disaster on the horizon with employment, so it is likely the RBA now pauses for a meeting or two which will definitely weigh on the banks and the broader market," Winchester said.
The "Big Four" banks closed lower, with Commonwealth Bank of Australia, the biggest lender, ending down 0.8%.
Miners ended 0.4% higher as gold miners hit a peak with the bullion climbing to a four-month high on U.S. rate cuts bets.
Gold stocks like Capricorn Metals and Northern Star jumped 11.7% and 6.4%, countering losses in iron ore miners BHP and Rio Tinto. Fortescue closed 4% lower and was top loser among peers on trading ex-dividend.
Tech stocks mirrored Wall Street moves. Xero fell 4.1%, while WiseTech ended 3.5% lower. REIT s and healthcare stocks also declined.
New Zealand's benchmark S&P/NZX 50 index gained 1.1% to finish the session at 13,070.45 points.
($1 = 1.5389 Australian dollars) (Reporting by Kumar Tanishk in Bengaluru; Editing by Harikrishnan Nair)

Sumber : Reuters