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Australia shares on track to fall after 4-day winning streak; NZ closed

Published 05/06/2017, 01:21 pm
Updated 05/06/2017, 01:30 pm
© Reuters.  Australia shares on track to fall after 4-day winning streak; NZ closed
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By Susan Mathew

June 5 (Reuters) - Australian shares declined on Monday, with financial stocks leading the losses despite advances on Wall Street as investors studied disappointing U.S. jobs data.

The data out on Friday suggested the labour market of the world's largest economy was losing momentum despite the unemployment rate falling to a 16-year low of 4.3 percent. 0242 GMT, the S&P/ASX 200 index .AXJO fell 42.914 points, or 0.7 percent to 5,745. The index rose the past four days, including a 0.9 percent gain on Friday.

The 'Big Four' banks were the biggest drags on the index, followed by mining giants Rio Tinto (LON:RIO) RIO.AX and BHP BHP.AX .

"We've got some top-down selling," says Michael McCarthy, an analyst at CMC Markets. "I suspect that one of the reason we're seeing that top-down selling today is that investors .. are less positive about the (job) numbers we got on Friday."

The financial index .AXFJ was down 1.7 pct as the four biggest banks lost between 1.3 percent and 2.2 percent.

Westpac Banking Corp WBC.AX hit lowest in nearly seven months, down 2.1 percent, while ANZ Banking ANZ.AX lost as much as 2.7 percent, its biggest intraday fall in nearly four weeks.

The materials and mining index .AXMM was 0.8 percent lower, tracking overnight losses in iron ore and copper. Rio Tinto was down over 1 percent, while BHP declined up to 2.2 percent. MET/L GOL/

BHP Chief Executive Andrew Mackenzie said on Monday he has not met with activist investor Elliott Management since they had talks in Barcelona. BHP had rejected Elliot's proposal to overhaul its corporate structure and spin off its U.S. oil division in April. falls in the index were contained by higher gold prices keeping the gold stocks buoyant. MET/L GOL/

Resolute Mining RSG.AX and Evolution Mining EVN.AX were among the top gainers on the index, rising more than 2 percent each.

Energy stocks contributed to the benchmark's decline as oil remained subdued with an increase in U.S. output leading to continued oversupply concerns. O/R

Woodside Petroleum WPL.AX and Oil Search OSH.AX were down 1.1 percent and 1.3 percent, respectively.

On the other hand, gains in AGL Energy AGL.AX of up to 1.9 percent and Origin Energy ORG.AX of 0.5 percent, pushed up the utility sector, while a 1.8 percent gain for Transurban Group TCL.AX lent support to the industrial sector.

The New Zealand stock market was closed for a holiday. The benchmark S&P/NZX 50 index .NZ50 added 0.7 percent on Friday.

For more individual stocks activity click on STXBZ

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