By Suhail Hassan Bhat
Oct 28 (Reuters) - Australian shares fell for a third straight session on Friday and on track for their biggest weekly loss in eight months, as financials were hit after Australia and New Zealand Banking Group ANZ.AX and AMP Ltd AMP.AX issued profit warnings.
The S&P/ASX 200 index .AXJO sagged half a percent, or 28.24 points to 5,267.3 by 0133 GMT. The index is on track to lose about 3 percent on the week.
"There are stock specific stories that is weighing on the market," said Tony Farnham an economist with Patersons Securities, adding "The financial sector was a major disappointment because of two specific stories, from AMP and ANZ."
AMP Ltd fell as much as 9.7 percent to a near three-year low and was the top loser on the index, after the country's biggest retail wealth manager said it would book $910 million in impairment and other one-off charges this financial year due to problems at its wealth protection unit. shares declined 0.8 percent, while Westpac Banking Corp WBC.AX and Commonwealth Bank of Australia CBA.AX followed suit. ANZ said it would record one-off charges of A$360 million alongside its full-year financial results, due Nov. 3. Australia's largest investment bank Macquarie Group Ltd MQG.AX moved in the opposite direction and was the top gainer on the financial index .AXFJ , after its half-year net profit beat estimates. Its stock rose 1.7 percent.
Some of the losses were offset by gains in energy and mining, which rose on higher commodities prices.
The energy index .AXEJ gained more than a percent, erasing five sessions of losses, as oil climbed after commitments from Gulf OPEC members suggest they are of a mind to cut 4 percent of their peak output. O/R major stocks on the energy index rose, with heavyweights Oil Search OSH.AX and Santos Ltd STO.AX gaining 0.9 percent and 1.6 percent, respectively.
Fortescue Metals Group FMG.AX advanced 1.6 percent and BHP Billiton (LON:BLT) BHP.AX jumped 2 percent, after iron ore futures in China rose to a near 26-month high on firm demand for high-grade material. WOW.AX dominated the consumer staples space, rising 1.9 percent, after the retail giant reported improved first quarter sales. Zealand's benchmark S&P/NZX 50 index .NZ50 was down 0.1 percent, or 8.8 points, at 6,933.14 in thin trading.
Gains in healthcare and industrials were negated by losses in materials and consumer stocks.
Summerset Group Holdings SUM.NZ touched a three-week high, as the retirement villages operator said it expects to report 40 percent to 46 percent hike in underlying profit for the year ended Dec. 31. Building FBU.NZ was down as much as 1.5 percent, its worst day in one week.
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