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Australia shares fall as financials retreat; New Zealand down

Published 21/11/2016, 01:02 pm
© Reuters.  Australia shares fall as financials retreat; New Zealand down
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By Geo Tharappel

Nov 21 (Reuters) - Australian shares fell on Monday, tracking Wall Street's decline last week, with financials pulling back from their sharp post-U.S. election gains as investors awaited clarity on President-elect Donald Trump's policies.

The S&P/ASX 200 index .AXJO fell 0.2 percent, or 9.9 points, to 5,349.5 at 0134 GMT.

"What is driving (Australian market) is a much more benign view of what a Trump presidency might mean for the U.S. economy," said Michael McCarthy, chief market strategist at CMC Markets.

Financial stocks .AXFJ fell as much as 0.6 percent, after having risen 5.1 percent since Nov. 8 to last Friday's close.

In the United States, the financial sector had risen 10.8 percent since the presidential election, boosted by prospects of higher interest rates and lighter regulation if Trump followed through with his electoral promises. .N

"Another factor is a little bit of nervousness that share markets, particularly in the U.S. and around the globe, have run ahead of what is still an uncertain situation around U.S. policy," McCarthy added.

Australia and New Zealand Banking Group Ltd ANZ.AX and Commonwealth Bank of Australia CBA.AX were among the biggest drags on the main index.

Healthcare stocks .AXHJ also dragged on the index, falling more than 1 percent, with biotherapeutics giant CSL Ltd CSL.AX weighing most on the sector.

Materials .AXMJ extended falls for a sixth session as iron ore and copper prices fell. IRONORE/ MET/L

Fortescue Metals Group Ltd FMG.AX lost close to 2 percent.

Rio Tinto (LON:RIO) Ltd RIO.AX was additionally affected by the ongoing probe relating to payments made to a consultant for rights to mine an iron ore deposit in Guinea. the trend, the energy sector .AXEJ jumped as oil prices rose on expectations of OPEC-led output cut. O/R Santos Ltd STO.AX rose more than 4 percent, while Woodside Petroleum Ltd WPL.AX gained as much as 1.5 percent.

Meanwhile, building materials supplier Boral Ltd BLD.AX agreed to buy U.S. firm Headwaters Incorporated HW.N for around $2.6 billion. Boral's shares are on a trading halt. Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.2 percent to 6,846.01 at 0134 GMT, hurt by financials and industrials, while healthcare stocks continued to gain.

The New Zealand-listed shares of ANZ Bank ANZ.NZ fell to their lowest in a week, while NZ-listed shares of Westpac Banking Corp WBC.NZ dropped 0.7 percent.

Fletcher Building Ltd FBU.NZ was the biggest drag on the main index and continued its fall since last Thursday when the government said it would investigate why newer buildings had been unable to withstand the recent quake. companies Ryman Healthcare Ltd RYM.NZ and Summerset Group Holdings Ltd SUM.NZ were among the top gainers on the main index.

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