Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Australia shares hurt by weak metals, earnings woes; NZ edge up

Published 20/02/2017, 12:30 pm
© Reuters.  Australia shares hurt by weak metals, earnings woes; NZ edge up
AXJO
-
BHP
-
BSL
-
BXB
-
VOD
-
BHPB
-
WES
-
WOR
-
AXEJ
-
AXFJ
-
S32
-

By Ambar Warrick

Feb 20 (Reuters) - Australian stocks declined on Monday morning, dragged down by weaker metals prices and earnings concerns, with shares of Brambles BXB.AX tumbling after the company issued a profit warning.

The S&P/ASX 200 index .AXJO fell 24.32 points or 0.4 percent to 5,781.5 points by 0055 GMT. The benchmark eased 0.2 percent on Friday.

Ric Spooner, Chief Market Analyst at CMC Markets, said softer metals prices were a drag on the market. "The other real driving factor is the earnings season, and a lot of what is happening on the index level is decided by profit results," he said.

Brambles dropped as much as 10 percent to its lowest since September 2015 after it forecast a flat full-year underlying profit. The pallets and container group posted a 3 percent rise in first-half underlying profit amid increased competition in its North American business. services provider WorleyParsons WOR.AX fell as much as 13.4 percent- its biggest percentage loss since May 2016 - to a more than three-month low after it reported a first-half loss. the brighter side on earnings, steel manufacturer Bluescope Steel BSL.AX hit a near 6-1/2 year high after tripling its underlying profit for the half-year ended Dec. 31, 2016, and announcing a share buy-back of A$150 million. . miners were on the back foot, with South32 S32.AX losing as much as 2.8 percent, while BHP Billiton (LON:BLT) BHP.AX declined 1.1 percent.

Energy stocks were also down, with the energy index .AXEJ shedding as much as 1.3 percent and on track for its fifth consecutive session of losses.

Supermarket operator Wesfarmers WES.AX , which went ex-dividend, dropped 2.2 percent and was the second biggest drag on the benchmark index.

The Australian financials index .AXFJ retreated after earlier touching its highest in over a month.

Australian Prime Minister Malcolm Turnbull has rejected a call from his government backbench to exempt the county's big four banks from a tax package aimed at reducing company tax rate from 30 percent to 25 percent. Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.15 percent or 10.53 points to 7104.6, helped by gains in materials and utilities stocks.

Electricity provider Meridian Energy MEL.NZ gained 0.8 percent.

Spark New Zealand SPK.NZ rose 1.2 percent. The telecom company asked a New Zealand court to rule that a 36-hour pause must take place before Sky Network Television SKT.NZ can buy Vodafone 's New Zealand unit VOD.L if the competition regulator approves the deal. more individual stocks activity click on STXBZ ($1 = 1.3036 Australian dollars)

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.