Australia Stocks Remain Jittery
June 28 2016 - 3:39AM
Dow Jones News
By Robb M. Stewart
MELBOURNE--Shares in Australia were again under pressure
Tuesday, closing at a fresh two-month low in the wake of Britain's
vote to leave the European Union.
Markets globally remain jittery, with investors unsure how to
position following the U.K. referendum. Still, the Australian
market managed to pare back its worst levels of the day as major
banks crept higher.
Surrendering a modest recovery Monday on the heels of Friday's
steep dive, the S&P/ASX 200 shed 33.9 points, or 0.7%, to
finish at 5103.3. Most industry sectors were in the red, led by
energy and materials stocks.
"While the major implication for both the U.K. and Europe
appears to be lower growth, the likely torturous process to leave
the union could sabotage markets for weeks or months," said Michael
McCarthy, chief market strategist at CMC Markets.
Investors continued to sell down shares of companies with
sizeable exposure to the U.K., including the local stock of British
bank CYBG, which was spun off by National Australia Bank in
February. It fell another 0.7% to A$4.11 to bring its tumble over
the last three sessions to 26%.
Asset managers BT Investment Management and Henderson Group also
continued to be targeted, losing 1.7% and 1.3%, respectively. And
QBE Insurance was knocked back another 1.6% to A$10.07, bringing
the three-day retreat to 14%.
There was some relief for investment bank and asset manager
Macquarie, which rebounded 1.4% to A$67.91 after strong selling the
past two sessions.
And the country's largest banks notched gains, led by Westpac
and National Australia Bank, which were both up 0.5%. Commonwealth
Bank of Australia rose 0.4%, while Australia & New Zealand
Banking nudged up 0.1%.
Morningstar in a note to clients said the big banks were well
placed to manage increased risks from the U.K. vote, including
being able to handle higher funding costs and increased volatility
that has impacted financial markets.
Among energy stocks, Woodside Petroleum and Oil Search slipped
0.3% and 0.6%, respectively, and Santos dropped 2.6% to A$4.54
after oil prices had their largest back-to-back percentage losses
since February in overnight trading.
BHP Billiton eased 0.3% to A$18.03, iron-ore miner Fortescue
Metals Group declined 3.7% to A$3.40 and gold producer Newcrest
Mining was 2.7% lower at A$23.55. Rio Tinto, meanwhile, was lifted
0.35 to A$44.20.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
June 28, 2016 03:24 ET (07:24 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Westpac Banking (ASX:WBC)
Historical Stock Chart
From Jul 2024 to Aug 2024
Westpac Banking (ASX:WBC)
Historical Stock Chart
From Aug 2023 to Aug 2024