By Sindhu Chandrasekaran
June 30 (Reuters) – Australian shares fell as much as 1.7
percent on Friday, posting their biggest intra-day percentage
fall since Nov. 2016, with investors taking their cue from Wall
Street’s overnight slump.
By 1:57 pm(0357 GMT), the S&P/ASX 200 index stood at
5,730.60 points, 1.5 percent, or 87.5 points, lower than
The index is on track to snap four-straight quarters of
Global equity investors are concerned about the rise in
interest rates globally, as a slew of hawkish comments from
central banks signalled the beginning of the end of a long phase
of ultra-loose monetary policies.
“The sell off clearly took its lead from the overnight
markets in the U.S. where we saw some pretty substantial drops,”
said James McGlew, executive director of corporate stock broking
for Argonaut Ltd in Perth.
“The market has given back all of yesterday’s burst of
energy, and we are looking at a very soft finish to the
financial year in Australia,” said McGlew. The index had gained
1.1 percent on Thursday.
Shares in Australia’s “big-four” banks fell between 1.3
percent and 1.5 percent.
BT Investment Management was the top loser on the
index after it shed 6.6 percent to fall to its lowest in over
Real-estate stocks were another major drag on the index.
Cromwell Property Group fell as much as 2.6 percent to
its lowest in a month while DEXUS Property Group
slipped as much as 3.3 percent, hitting a more than three-month
Among other sectors, materials slipped 1.2 percent,
shrugging off the rise in commodity prices over night.
BHP Billiton Ltd dropped 1.1 percent while South32
Ltd fell 2.2 percent after it suspended mining
operations at Appin colliery.
Rio Tinto Ltd slipped 0.4 percent snapping six
sessions of gains. The miner’s shareholders approved sale of a
suite of Australian coal assets to Yancoal Australia
for $2.69 billion, ending a bidding war with commodities trader
Among the gainers were Mineral Resources Ltd and
Isentia Group Ltd which rose 7.8 percent and 1.4
New Zealand’s benchmark S&P/NZX 50 index dropped 0.8
percent, or 60.84 points, to 7,624.61.
Telecom stocks and healthcare weighed on the index.
Spark New Zealand Ltd fell 3.9 percent while Fisher
& Paykel Healthcare Corporation Ltd shed 1.5 percent.
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(Reporting by Sindhu Chandrasekaran in Bengaluru; Additional
reporting by Chris Thomas; Editing by Simon Cameron_moore)