Australian shares close flat in cautious start to week, bank rally fades

Published on 10/06/2025 at 02:29 am EDT
(Updates to close)

• ASX200 dips
• Banks end lower
• Gold stocks rose 1.7%
• NZ C.bank rate decision due on Wednesday

(Reuters) - Australian shares pared early gains to end flat on Monday, as investors pulled back from the banking sector after the previous week's rally, offsetting strength in commodity stocks due to surging gold prices.
The S&P/ASX 200 index closed 6 points lower at 8,981.4 on a day with thin trading volumes as most of the states in the country were shut for a public holiday.
Earlier in the session, the index touched its highest point since the August 25 record high.
The buzz in the market has cooled modestly as investors turned cautious, with the benchmark hovering near record highs, said Hebe Chen, market analyst at Vantage Markets.
"The retreat also reflects a market balancing strong commodity tailwinds against uncertainty from delayed U.S. data, shifting Fed signals, and a hotter-than-expected local inflation gauge," Chen added.
The Reserve Bank of Australia turned more hawkish on policy last week, warning that inflation was running hotter than expected.
Financial stocks, which rose 3% last week, benefiting from the higher-for-longer rate outlook, fell 0.1%. Top lender Commonwealth Bank of Australia shed 0.3%.
"Banks are marking time after a solid quarter, as investors pause to gauge the balance between moderating credit growth and steady margins. With the RBA on hold, the sector feels due for consolidation rather than correction," Chen said.
Meanwhile, the heavyweight mining sub-index rose 0.7%. Lynas Rare Earths surged 7.2% to lead gains on the sub-index.
Gold stocks rose 1.7%, adding to the gains on the mining sub-index, as bullion surged past $3,900 an ounce for the first time on safe-haven demand.
Northern Star Resources and Evolution Mining climbed 1.5% and 2.6% respectively.
In New Zealand, the benchmark S&P/NZX 50 index ended 0.2% lower at 13,489.24 points. The country's central bank is expected to cut rates by 25 basis points on Wednesday, according to economists polled by Reuters.
 (Reporting by Kumar Tanishk in Bengaluru; Editing by Janane Venkatraman) 

Sumber : Reuters