NVDA gained a massive 197% since our AI first added it in November - is it time to sell? 🤔Read more

Australia shares dip on materials and energy stocks; NZ edges higher

Published 16/08/2018, 12:23 pm
© Reuters.  Australia shares dip on materials and energy stocks; NZ edges higher
AUD/USD
-
AXJO
-
BHP
-
IAG
-
RIO
-
OSH
-
ORG
-
QBE
-
RIO
-
STO
-
TLS
-
AXMM
-
AXEJ
-

* Materials stocks drag Aussie shares

* Weaker iron ore futures hit miners

* Origin leads losses in energy stocks

* NZ rises marginally

By Aditya Soni

Aug 16 (Reuters) - Australian shares dipped on Thursday, as a 4 percent drop in Chinese iron ore futures led to a sell-off in materials, while energy stocks fell on lower oil prices.

The S&P/ASX 200 index .AXJO fell 0.3 percent or 17.30 points to 6,311.70 by 0200 GMT. The benchmark added 0.5 percent on Wednesday.

"Strengthening U.S. dollar and a poor report of inventories out of the U.S. for oil, has weighed on the commodities complex," Michael McCarthy, Chief strategist at CMC Markets and Stockbroking said.

Chinese iron ore futures DCIOcv1 on the Dalian Commodity Exchange fell as much as 4.3 percent on Thursday, leading to a slump in Australian materials stocks.

Mining stocks accounted for half of the losses on the main index, with the metals and mining index .AXMM trading 2.8 percent lower at its weakest since April 16.

Mining behemoth BHP BHP.AX fell 3.6 percent to a more than three-week low, while rival Rio Tinto (LON:RIO) Ltd RIO.AX dropped 2.7 percent to a near eight-month low.

Origin Energy Ltd ORG.AX weakened as much as 7.7 percent, leading losses in the energy sector after underlying earnings of its energy markets business fell short of the its expectations. wider energy index .AXEJ fell 2.1 percent, hurt by a slide in oil futures. O/R

Other blue chips in the sector, Oil Search Ltd OSH.AX and Santos Ltd STO.AX fell 1.8 percent and 2.1 percent, respectively.

However, teleco Telstra Corporation Ltd TLS.AX and QBE Insurance Group Ltd QBE.AX gained, braking the slide of the benchmark.

Telstra rose 5.2 percent and was the biggest boost to the benchmark after posting a lower-than-expected annual profit drop. of QBE rose 7 percent to a more than six month high. The insurer said its first-half net profit rose, helped by an improved performance in several regions and a more streamlined structure after offloading several of its businesses over the past year. insurance stocks also gained, with Insurance Australia Group Ltd IAG.AX rising 2.1 after declining 5.8 percent in the previous session.

New Zealand shares ticked up, with the benchmark S&P/NZX 50 index .NZ50 rising 0.2 percent or 14.61 points to 9,002.19.

Industrials and health care stocks underpinned the bullish sentiment, with Auckland International Airport Ltd AIA.NZ firming 1.3 percent, while Fisher & Paykel Healthcare Corporation Ltd FPH.NZ strengthened 0.3 percent to a more than one-week high.

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.