Australian shares closed lower for a second session on Wednesday, with high-flying bank stocks suffering another bout of profit taking. The S&P/ASX 200 index fell 0.5 percent, or 32.3 points, to 5,901.6, extending Tuesday's 0.4 percent decline. All the big four banks ended lower, led by a 0.9 percent fall in Westpac Bank. Investors were still trying to get over their disappointment that the Reserve Bank of Australia (RBA) did not cut interest rates on Tuesday.
New Zealand's benchmark NZX 50 index eased 0.3 percent, or 19.6 points, to 5,874.1. The banking sector was the biggest drag on the index, with the big four banks all in the red, led by a 0.9 percent fall in Commonwealth Bank. The major miners were also weaker, with Rio Tinto shedding 3.5 percent as the stock went ex-dividend.
Data showing Australia's economy grew at a moderate 0.5 percent in the fourth quarter was little help. "Traders have been net sellers of stocks with the Q4 GDP print the key focal point. Many saw this data point as a key component in influencing the Reserve Bank's view on whether rates will come down in April or May," said Chris Weston, chief market strategist at IG.
New Zealand's Xero fell 1.6 percent, as a lack of follow-through buying after its rally last week on the back of additional capital raising prompted more investors to book profits on the fast-growing company. Other tech-related companies also fell, with online boardroom member services developer Diligent sliding 1.9 percent, further retreating from a 1-1/2-year high hit earlier in the week. Profit taking also stung Fisher and Paykel Healthcare, which fell 1.2 percent, backing away from a lifetime high on Monday.
Comments
Comments are closed.