By Anusha Ravindranath
Oct 24 (Reuters) - Australian shares slipped for a second straight session on Monday as energy stocks took a hit on oil price drop after Iraq said it does not want to join the production cut to prop up the market. O/R
The S&P/ASX 200 index .AXJO fell 0.9 percent, or 47.92 points, to 5,430.32 by 1227 GMT. It lost as much as 0.97 percent, to hit a near one-month low.
Oil prices fell after Iraq said it wanted to be exempt from a production cut by the Organization of the Petroleum Exporting Countries (OPEC) that the group plans to decide at its Nov. 30 meeting. benchmark energy index .AXEJ slipped over 1 percent to touch its lowest in three weeks, with oil majors Santos Ltd STO.AX down 2.6 percent and Oil Search Ltd OSH.AX dropping 1.6 percent.
"Oil prices are under pressure and are trading light," said Michael McCarthy, chief market strategist at CMC Markets. "There is some profit-taking in the market ahead of some major events, such as (Australia's) CPI data due this week."
Australia's central bank last week said coming data on inflation and employment will be critical for policy decisions at its next meeting on Nov. 1, opening the door to a possible interest rate cut. the biggest constituent of the index posted losses with the 'Big Four' banks moving into the red. Some local media reports flagged that Australia's major lenders may be under pressure to cut dividends as the earnings season kicks off. benchmark financial index .AXFJ fell as much as 0.79 percent, its biggest percentage drop in more than a week.
NAB shares NAB.AX fell for a third straight session to their lowest in a month. Investors are waiting for the lender's earnings, due later this week.
The gold index .AXGD shed 1.4 percent with gold miners Newcrest Mining NCM.AX and Evolution Mining EVN.AX falling more than 1 percent.
On the upside, Genworth Mortgage Insurance Australia Ltd GMA.AX hit a two-month high, posting gains for a fifth straight session, after China Oceanwide Holdings 0715.HK agreed to buy all outstanding shares of its parent Genworth Financial (NYSE:GNW) GNW.N for US$2.7 billion. The stock was among the top performers on the index.
New Zealand's stock market was closed for Labour Day.
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