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Australian shares dip on financials; NZ edges up

Published 04/05/2018, 12:53 pm
Updated 04/05/2018, 01:00 pm
© Reuters.  Australian shares dip on financials; NZ edges up
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* Aussie shares on track to end five sessions of gains

* Financials account for most of losses

* Consumer staples rise to record high

* NZ buoyed by gains in a2 Milk

By Aditya Soni

May 4 (Reuters) - Australian shares ticked down on Friday, led by losses in financials which fell on the prospects of a weaker local currency and persistently low interest rates.

The S&P/ASX 200 index .AXJO fell 0.5 percent or 30.30 points to 6,068.0 by 0247 GMT. The benchmark added 0.8 percent on Thursday and was on track to gain 1.9 percent for the week.

The Reserve Bank of Australia sees faster economic growth this year and next but doubts inflation will reach the mid-point of its 2 percent to 3 percent target band until 2020, a strong signal rates are set to stay at record lows for a good while yet. have very low growth so they are seeing selling pressure as well as the global guys selling the banks on the weak currency outlook," said Mathan Somasundaram, Market Portfolio Strategist at Blue Ocean Equities.

Financials .AXFJ led the losses on the main index, falling 0.5 percent, on track to snap five sessions of gains.

Top lender Commonwealth Bank of Australia CBA.AX fell 1.4 percent and was the biggest drag on the benchmark, while Westpac Banking Corp WBC.AX dipped 1 percent.

Bucking the trend, Macquarie Group MQG.AX rose as much as 3 percent to a record high.

The country's biggest investment bank posted a record annual profit and dividend as reduced profits from its financial markets business were more than offset by higher earnings in its asset management and banking arms. L3N1SA6A3

AMP Ltd AMP.AX , the country's largest wealth manager, traded flat after refuting assertions by lawyers assisting an inquiry into banking misconduct that it had committed a criminal offence when it provided an altered report to the regulator. has seen around A$2.2 billion ($1.7 billion) wiped off its market capitalisation over the past three weeks in the wake of revelations at the Royal Commission enquiry into financial misconduct.

Materials also accumulated losses, hurt by a fall in iron ore and aluminium prices. IRONORE MET/L

South32 Ltd S32.AX dropped 3.1 percent, while Rio Tinto (LON:RIO) Ltd RIO.AX fell 0.2 percent.

Shares of commercial explosives maker Orica Ltd ORI.AX rose 3.2 percent to their highest in six months after it clarified that media reports regarding an A$115 mln ($86.84 mln) provision for environmental cleanup was part of a A$300 mln charge it announced on March 1. on the benchmark were capped by gains in consumer staples .AXSJ , which rose 0.4 percent to a new record high.

"The market is willing to park money in the supermarkets because of a lack of choice, not because of any growth improvement," said Somasundaram.

Australia-listed shares of a2 Milk Company Ltd A2M.AX rose as much as 4.9 percent to a more than three-week high, while grocery giant Woolworths Group Ltd WOW.AX traded 0.2 percent higher.

New Zealand's benchmark S&P/NZX 50 index .NZ50 ticked up 0.1 percent or 4.80 points to 8,551.64, on track to register a weekly gain of 2.2 percent.

Consumer staples accounted for most of the gains, with the a2 Milk Company Ltd ATM.NZ rising 2.3 percent to its highest since April 11.

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