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ASX200 closes at over one-month low
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Banks drive losses as CBA slumps 5.7%
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Fortescue falls 1.1%, Wesfarmers up 1.8%
(Updates to close)
By Rishav Chatterjee
Feb 15 (Reuters) - Australian shares recorded their
worst day in nearly six weeks on Wednesday, pulled down by big
losses in banking stocks after Commonwealth Bank flagged
headwinds facing its mortgage business.
The S&P/ASX 200 index fell 1.1% to 7,352.2 points,
its biggest single-day decline since Jan 3. The benchmark closed
0.2% higher on Tuesday.
The financials sub-index declined 3.4% to log its
worst session since June, with the so-called "Big Four" banks
trading 3.5% to 5.7% lower.
Australia's biggest lender CBA delivered record profits on Wednesday, but shares tumbled 5.7% on concerns that its margins may have peaked while headwinds to mortgage business in a high-interest rate environment further weighed.
"Despite the likelihood of further interest rate hikes, share price of big Australian banks are falling because their net interest margins are under pressure due to intense competition for home loans and deposits," said Tony Sycamore, market analyst at IG Australia.
Overnight, data showed U.S. January consumer prices accelerated, suggesting that the Federal Reserve was far from pausing its interest rate hiking campaign. Technology shares declined 0.7%, while weaker bullion prices sent gold stocks lower. Mining stocks were broadly down 0.2%. Fortescue reported lower profit and dividends for the first half and flagged persistent inflationary pressure. Its shares closed 1.1% down. Meanwhile, Australia's biggest listed conglomerate Wesfarmers Ltd booked a better-than-expected interim profit, boosted by a post-lockdown rebound at its Kmart chain. Shares closed up 1.8%. Treasury Wine Estates slipped 6.8% in its worst session since February 2021 after its earnings missed estimates. Star Entertainment topped gains on the ASX200 rebounding from a sharp sell-off in recent days, while GUD Holdings and Cochlear jumped on upbeat results.
New Zealand's benchmark S&P/NZX 50 index closed up
0.1% at 12,083.12 points, with gains led by Tourism Holdings
after it raised its annual forecast.
(Reporting by Rishav Chatterjee in Bengaluru; Editing by Dhanya
Ann Thoppil)
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