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Australia and New Zealand shares lower as ECB disappoints

Published 09/09/2016, 01:54 pm
Updated 09/09/2016, 02:00 pm
© Reuters.  Australia and New Zealand shares lower as ECB disappoints
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By Rushil Dutta

Sept 9 (Reuters) - Australian shares were lower for a second straight day on Friday, with financials losing heavily after the a European Central Bank meeting shed no light on future monetary policy moves.

President Mario Draghi on Thursday said the ECB will study options to ensure it can pursue its unprecedented money-printing programme but did not hint at the anticipated extension of its asset purchases, maintaining the March end-date. had expected the central bank to respond to pressure for further easing by announcing an extension to its asset purchase programme by year-end.

The ECB also cut its 2017 economic growth forecast to 1.6 percent from 1.7 percent seen in June. Australian main index .AXJO fell to its lowest since early July, down 42.35 points, or 0.8 percent, at 5,343.40 by 0308 GMT.

"Essentially, the ECB meeting was disappointing," said Bill Keenan, head of equities and research at Lonsec.

Gains in basic materials and energy, which came on the back of a weaker dollar, were offset by losses in financials and healthcare stocks. MET/L .DXY O/R

Australia's biggest banks by market cap, Commonwealth Bank of Australia CBA.AX and Westpac Banking Corp WBC.AX , were both about 1.5 percent lower, as was National Australia Bank NAB.AX .

The healthcare sector was pulled down by biotech firm with European exposure CSL Ltd CSL.AX , which shed 2 percent.

Laboratory services provider Sonic Healthcare SHL.AX and hospital operator Ramsay Health Care RHC.AX lost about 2.8 percent each.

Consumer stocks lost too, as retailers Wesfarmers Ltd WES.AX and Woolworths Ltd WOW.AX lost 0.8 percent and 1.6 percent respectively.

Mining majors Rio Tinto (LON:RIO) Ltd RIO.AX and BHP Billiton (LON:BLT) Ltd BHP.AX added 1.6 percent and 2.4 percent respectively.

However, gold miner Newcrest Mining NCM.AX was nearly 3 percent lower, dragged the sector .AXGD down.

Energy stocks .AXEJ were higher on oil prices, which surged more than 4 percent on Thursday before pulling back on profit-taking. Search Ltd OSH.AX gained 3.5 percent, while sector heavyweight Woodside Petroleum WPL.AX was 0.6 percent higher.

New Zealand's benchmark S&P/NZX 50 index .NZ50 was 0.7 percent, or 52.42 points, lower at 7,482.3.

The benchmark was pulled lower by financials, utilities and industrials, the biggest index constituents.

Internet-auction website Trade Me Group TME.NZ was the biggest loser on the index. Westpac Banking Corp WBC.NZ was 1 percent lower.

Air New Zealand AIR.NZ and Auckland International Airport AIA.NZ , down 5 percent and 3 percent respectively, were also among the biggest losers.

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