Australia shares open lower as domestic virus concerns weigh

Published 06/01/2021, 11:44 am
Updated 06/01/2021, 11:48 am
© Reuters.
AXJO
-
CSL
-
IAG
-
OSH
-
STO
-
TLS
-
TPG
-
AXEJ
-
AXHJ
-
AXIJ
-
NZ50
-

* Australia to bring forward COVID vaccine roll-out

* Healthcare stocks drop over 1%

* Energy stocks benefit from rally in oil prices

By Soumyajit Saha

Jan 6 (Reuters) - Australian shares slipped on Wednesday as concerns over the extent of a Sydney coronavirus cluster saw authorities ban residents from several suburbs, stoking fears of tougher lockdown restrictions and tepid economic growth.

New South Wales, Australia's most populous state, called on residents in three cities to be tested for COVID-19 and isolate, while the country's largest city Sydney continued to battle a number of virus clusters. S&P/ASX 200 index .AXJO was down 0.45% at 6,681.9 by 1130 GMT. The benchmark closed roughly flat on Tuesday.

The health ministry said it would bring forward its COVID-19 vaccine rollout plans by two weeks to early March, as fears of a wider outbreak mounted. Australia has repeatedly resisted pressure to expedite its vaccination distribution timetable, citing low coronavirus cases in the country. stocks .AXHJ dropped 1.6%, with biotech giant CSL Ltd CSL.AX losing 1.4%.

Heavyweight financials also traded lower, with the so-called 'Big Four' banks falling in the range of 0.5% to 0.8%.

Tech stocks .AXIJ also took a beating, with Telstra Corp TLS.AX and TPG Telecom TPG.AX falling 0.3% and 0.6%, respectively.

Bucking the sombre mood, energy stocks .AXEJ soared as oil prices benefited from the news of proposed output cuts by major producer Saudi Arabia. O/R

Oil and gas explorers Oil Search OSH.AX and Santos Ltd STO.AX were among the top gainers in the index, climbing 4.8% and 4.1%, respectively.

Insurance Australia Group IAG.AX edged up after it announced a finalised catastrophe reinsurance programme for 2021. number of issues on the ASX that advanced were 690 while 500 declined.

In neighbouring New Zealand, the benchmark S&P/NZX 50 index .NZ50 rose 0.4%, helped by gains among utility and tech stocks.

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.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.