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Australia shares halt 5-session winning run as investors lock in gains

Published 21/01/2020, 05:17 pm
© Reuters.  Australia shares halt 5-session winning run as investors lock in gains
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* China coronavirus threat hits tourism, travel stocks

* BHP ends marginally down after qtrly production results

* New Zealand benchmark gains 0.5% (Updates to close)

By Aby Jose Koilparambil

Jan 21 (Reuters) - Australian shares snapped their record-breaking run over five sessions on Tuesday as investors booked profits, while increasing concerns over a new strain of coronavirus in China dragged down travel and tourism-related stocks.

The S&P/ASX 200 index .AXJO finished about 0.2% lower at 7,066.30, after gaining more than 2.5% over the past five sessions.

The heavyweight Financials .AXFJ closed down 0.3%, while the Energy .AXEJ and Technology .AXIJ sub-indexes lost 0.8% and 1.27%, respectively.

Top lender Commonwealth Bank of Australia CBA.AX shed 0.5%, while the entire constituents of the energy index including top-listed oil & gas firm Woodside Petroleum WPL.AX finished in the red.

"Some of the selling we are seeing here is investors locking in gains ahead of what might be a downdraft," said Michael McCarthy, chief market strategist at CMC Markets.

Meanwhile, travel and tourism stocks came under pressure after China confirmed person-to-person spread of a new coronavirus and reported a fourth death related to the outbreak in central city of Wuhan. will begin screening passengers arriving from Wuhan, although authorities warn that an outbreak would be hard to prevent. this particular virus spreads further and there are more cases reported in the Asia-Pacific area, a more lasting impact on local travel, airlines and related stocks cannot be discounted," said James Tao, market analyst at CommSec.

As per data released by Australian Bureau of Statistics last week, China is Australia's top tourism source, accounting for over 1.4 million visitors in 2018-19.

Airliner Qantas Airways QAN.AX ended the session 1.7% lower and Sydney Airport Holdings SYD.AX lost 3%, while Flight Centre Travel Group FLT.AX and Corporate Travel Management Ltd CTD.AX fell about 3% and 4.6%, respectively.

Top miner BHP Group BHP.AX finished marginally down after it reported an 11% drop in New South Wales thermal coal output in the first half due to Australian bushfires but maintained its full-year forecast. The miner posted a 3% rise in iron ore production. heavyweight Metals and Mining index .AXMM , however, finished slightly up, thanks to gold stocks which gained on safe-haven play.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 closed 0.5% higher at 11,805.15, with SKY Network Television Ltd SKY.NZ and Meridian Energy Ltd MEL.NZ gaining about 3% each.

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