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Australia shares down as Healthscope sinks; NZ falls

Published 21/10/2016, 01:01 pm
© Reuters.  Australia shares down as Healthscope sinks; NZ falls
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By Suhail Hassan Bhat

Oct 21 (Reuters) - Australian shares were lower on Friday, dragged down by healthcare stocks, after Healthscope Ltd HSO.AX tumbled more than 26 percent following a profit warning.

The S&P/ASX 200 index .AXJO fell 0.5 percent, or 28.4 points, to 5413.7 by 0104 GMT. The index is on track for its second consecutive week of losses.

Healthscope slumped to an eight-month low and posted its biggest intra-day percentage fall after company said it has experienced slower than expected revenue growth in hospitals in the first quarter. stock was heavily traded, with 42.8 million shares changing hands, about nine times its 30-day average volume.

Its peers Ramsay Health Care RHC.AX and CSL CSL.AX fell 5.7 percent and 2.2 percent, respectively.

Energy stocks .AXEJ were down 1 percent, after oil prices slid on a resurgent dollar, encouraging players to take profit on the previous day's rally that sent U.S. crude to 15-month highs. O/R

The dollar hit seven-month highs against a basket of currencies .DXY and a three-month peak versus the euro EUR= after the European Central Bank kept interest rates unchanged and U.S. data showed home resales surged in September.

"The US dollar strength is the big story for me overnight, predominantly driven by Euro weakness more than anything else," said Chris Weston, chief market strategist at IG in Melbourne.

Oil Search OSH.AX dropped 1.5 percent, while Santos Ltd STO.AX lost 0.5 percent despite reporting an 11 percent rise in sales revenue in the September quarter. gold index .AXGD fell 2.4 percent, as the gold price eased slightly after three days of gains, with Newcrest Mining Ltd NCM.AX down 2.7 percent. GOL/

At the other end, BHP Billiton (LON:BLT) BHP.AX rose 0.8 percent. Brazilian prosecutors charged 21 employees of Samarco, a joint venture between the company and Vale SA VALE5.SA , with homicide for a dam collapse last November that killed 19 people. Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.2 percent or 14.4 points to 6959.38.

Consumer discretionary stocks were the biggest drag on the index, with Skycity Entertainment Group Ltd SKC.NZ falling more than 10 percent to its lowest in a year, after warning that it is likely to be adversely affected by the detention of Crown Resorts employees in China. Health OHE.NZ was the top percentage gainer on the benchmark, rising as much as 3.8 percent to record its biggest intra-day gain in three weeks.

For more individual stocks activity click on STXBZ

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