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Australia shares drift as casino operator slumps, NZ drops

Published 17/10/2016, 01:06 pm
© Reuters.  Australia shares drift as casino operator slumps, NZ drops
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By Aparajita Saxena

Oct 17 (Reuters) - Australian shares drifted lower on Monday, with Crown Resorts CWN.AX falling the most after it said 18 of its employees including its head of VIP gambling had been detained by Chinese authorities.

Crown Resorts Ltd CWN.AX , Australia's biggest casino company slumped as much as 12.5 percent, poised for worst percentage performance in nearly eight years. S&P/ASX 200 index .AXJO edged down 0.4 percent or 23.43 points to 5,410.6 by 0154 GMT.

Sentiment also remained subdued following comments from Federal Reserve Chair Janet Yellen on Friday when she expressed concerns of weakening U.S. economic potential and said aggressive steps may be needed to rebuild it, adding the Fed may need to run a "high-pressure economy" to reverse damage from the 2008-2009 crisis. she did not address interest rates or immediate policy concerns directly, traders continued to price in a 67-percent chance of a rate hike in December.

Australian financial stocks .AXFJ , which have tended to outperform during past rate hike cycles, offset losses in other sectors and rose 0.6 percent. The "Big Four" banks rose 0.4 to 1 percent.

Declining issues in Australia marginally outpaced advancers by a 1.05:1 ratio, with 158 issues hitting new lows as at 0111 GMT.

Healthcare companies were among the top percentage losers on the benchmark .AXJO , with medical device maker Fisher & Paykel Healthcare FPH.AX stumbling 2.8 percent.

Energy shares .AXEJ fell for a third session after oil prices receded on Monday following a rising rig count in the United States, record OPEC output, and slowing global economic growth.

Beach Energy BPT.AX shed as much as 3 percent before recovering some of its losses, while oil majors Woodside Petroleum WPL.AX and Oil Search OSH.AX fell 0.6 to 1 percent.

Bucking the trend, Whitehaven Coal WHC.AX rose 3.5 percent to its highest in nearly 3 1/2 years after reporting September quarter coal sales of 5.03 million tonnes, up 12 percent from last year.

Iron miner Fortescue Metals Group FMG.AX inched up 1.4 percent after Shanghai steel futures climbed to a five-week high on Friday, amid solid demand that has kept production high and boosted appetite for raw material iron ore. Zealand's benchmark S&P/NZX 50 index .NZ50 slid 1 percent or 72.12 points to 7,061.14, its lowest in around three months.

Skycity Entertainment Group SKC.NZ was the biggest percentage loser on the index, wilting 4.3 percent, while Air New Zealand AIR.NZ and Fonterra Shareholders' Fund FSF.NZ were among the biggest percentage gainers.

For more individual stocks activity click on STXBZ

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