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Australia shares slide 1.6 pct, NZ resilient

Published 24/02/2016, 01:44 pm
© Reuters.  Australia shares slide 1.6 pct, NZ resilient
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SYDNEY/WELLINGTON, Feb 24 (Reuters) - Australian shares fell on Wednesday as a renewed slide in oil prices took a heavy toll on the resources sector, but encouraging earnings from healthcare firms helped lift New Zealand stocks.

Australia's benchmark S&P/ASX 200 index .AXJO shed around 1.6 percent, or 78.69 points, to 4,900.90 by 0157 GMT, stepping back further from a three-week peak of 5,035.60 set a day earlier.

Among the worst performers, engineering firm WorleyParsons WOR.AX slumped more than 10 percent after reporting a big drop in profit and scrapping its interim dividend. Billiton BHP.AX declined 6.8 percent, while fellow global miner Rio Tinto (L:RIO) RIO.AX slid 5.3 percent. Oil and energy producer Santos STO.AX fell 4.5 percent.

"Today's market movement is not surprising given what we saw in the U.S. overnight and considering what's happening to oil prices," said Evan Lucas, market strategist at IG in Melbourne.

Oil prices extended sharp falls from the previous session after top exporter Saudi Arabia ruled out production cuts and industry data showed a further build in U.S. crude stockpiles. major banks were not spared either, with all big four lenders down over 2 percent.

In contrast, gains in New Zealand's healthcare sector helped push the benchmark S&P/NZX 50 index .NZ50 up 0.84 percent, or 51.61 points, to 6,227.28.

Healthcare firm Ebos Group EBO.NZ rose 5.0 percent after announcing its half-year net profit after tax rose 18.9 percent. care and retirement village operator Metlifecare MET.NZ climbed 6.5 percent as investors cheered a threefold surge in its half year net profit. more individual stocks activity click on STXBZ

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