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BHP shares decline to lowest since Jan 6
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Coles warns about rising wages, energy bills
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Viva Energy slumps 3%
(Updates to close)
By Rishav Chatterjee
Feb 21 (Reuters) - Australian shares closed slightly
lower on Tuesday as central bank minutes signalled more interest
rate hikes, while mining giant BHP Group slipped after posting a
sharper-than-expected drop in profit.
The S&P/ASX 200 index slipped 0.2% to 7,337.5 after
closing 0.1% higher on Monday, with weakness in broader Asian
markets also weighing.
The Reserve Bank of Australia (RBA) abandoned all thought of pausing at its February meeting and signalled more rate hikes would be needed in the months ahead, minutes of the last policy meeting showed. "I expect to see more rate hikes ahead, especially with inflation soaring to decade highs in the fourth quarter," said Josh Gilbert, a market analyst at eToro Aus Capital Ltd. "The RBA has said rates have further to go, and that could see at least two more hikes." BHP fell 0.3%, hitting its lowest in more than six weeks, after its first-half profit missed expectations.
The miner, however, said it expected a demand rebound in top
metals consumer China, boosting iron ore prices. That helped miners close the session 0.7% higher.
Rio Tinto and Fortescue Metals Group ended the
day 0.8% and 3.2% higher, respectively.
Financials fell 0.5%, with all the "big four" banks
closing in negative territory. Real estate , gold and technology stocks slipped between 0.1% and 1.1%.
Among individual stocks, Coles Group skidded 0.9%
after the grocer warned rising wages and energy bills would
continue to push up costs.
Ingenia Communities marked its worst day since
September 2009 with a drop of 13.4% after the property developer
slashed annual estimates.
Building services provider Johns Lyng topped the
benchmark index with a gain of 13.2% after a sharp rise in
half-year profit.
Zinc miner New Century Resources jumped 42.2% after
South Africa's Sibanye-Stillwater launched an
unsolicited takeover offer.
Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50
index dropped 0.8% to 11,801.49.
(Reporting by Rishav Chatterjee in Bengaluru; Editing by
Subhranshu Sahu)
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