Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Australia, NZ shares steady, gold stocks tumble

Published 20/07/2015, 01:55 pm
© Reuters.  Australia, NZ shares steady, gold stocks tumble
AXJO
-
MQG
-
ANZ
-
NCM
-
ORG
-
CPU
-
STO
-
WDS
-
AXGD
-
EVN
-
NST
-
FNP
-

(Adds analysis, quotes, stocks on the move)

By Cecile Lefort and Naomi Tajitsu

SYDNEY/WELLINGTON, July 20 (Reuters) - Shares in Australian gold miners were hit hard as the international price of the precious metal sank to a five-year low on Monday, but banks and technology firms managed to offset commodity weakness, leaving the overall index little changed.

The S&P/ASX 200 index .AXJO dipped 0.1 percent or 8.2 points to 5,631.9 by 03:31 GMT. The benchmark hit a three-week peak of 5,591.2 last Thursday.

A sharp drop in gold's price sent the S&P/ASX All Ordinaries Gold index .AXGD index around 9 percent down, as currency factors exacerbated the weakness. ID:nL3N100195

"The Australian dollar gold price is falling faster than the Aussie dollar and that's hurting the gold miners," said David Lennox, a commodities analyst for Fat Prophets.

Evolution Mining EVN.AX tumbled 15 percent, while Northern Star Resources NST.AX lost 9 percent, and Newcrest Mining NCM.AX , Australia's biggest independent listed producer, shed 8 percent.

The energy sector was also affected with Woodside Petroleum WPL.AX , Origin Energy ORG.AX and Santos STO.AX under pressure.

Financial shares, however, fared better after the Australian Prudential Regulatory Authority (APRA) said on Monday it will lift the amount of bank capital for home loans to strengthen the finances of the nation's largest lenders. ID:nL3N0ZZ0EV

Investors were relieved that the increase was on the low end of the expected range.

Macquarie Group MQG.AX was the biggest beneficiary, up 2 percent, while Australia and New Zealand Banking Group ANZ.AX added 0.7 percent.

Information and technology sector outperformed, thanks in part to a near 4 percent jump in Computershare Ltd CPU.AX following a weekend media report about a potential UK acquisition. ID:nL3N100054

New Zealand's benchmark NZX50 index edged up 10.87 points or 0.2 percent to a two-week high of 5,864.63 in early trade, boosted by gains in telecommunications and industrial shares.

A thaw in global risk aversion bolstered the country's biggest companies, with telecom retailer Spark SPK.NZ rising 1 percent, while Auckland Airport AIA.NZ rose 0.5 percent and Air New Zealand rose 0.9 percent.

Summerset SUM.NZ jumped 1.3 percent to a lifetime high of NZ$3.99 after the fast-growing retirement village operator said it had picked up more land to extend one of its existing villages, while it was looking for more land acquisitions. ID:nWNBS011H0

Further upside was limited by a 0.5 percent slide in building materials maker Fletcher Building FBU.NZ .

A2 Milk Company ATM.NZ was down 1.3 percent at NZ$0.760 after the niche milk processor said it had rejected a takeover offer from Australia's Freedom Foods FNP.AX and U.S. food giant Dean Foods DF.NZ . ID:nL3N10003T

(Editing by Simon Cameron-Moore)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.