Australia’s share market has started the week lower, with the major banks dragging heavily after a Westpac update weighed on earnings season confidence.
The benchmark S&P/ASX200 index fell 31.3 points by midday on Monday, down 0.33 per cent to 9,232.8, as the broader All Ordinaries slipped 22.6 points, or 0.24 per cent, to 9,422.5.
The local exchange had been tipped for a modest rise, but hopes were dashed as the heavyweight financials sector tumbled more than two per cent, dragging the benchmark indices underwater.
The drop came after Westpac slumped 5.7 per cent to $35.76 in early trade after flagging a 20 per cent drop in mortgage applications since the May federal budget in its quarterly update.
ANZ, CBA and NAB each fell two per cent or more as investors took profits on a recent banking rally and mulled a potentially soft earnings season for the majors ahead of Commonwealth Bank’s full-year results on Wednesday.
Outside of financials, the bourse was performing well, with seven of 11 sectors trading higher, led by health care, materials and communications stocks.
The raw materials sector gained 0.9 per cent, aided by decent leads from BHP and Rio Tinto despite copper easing from recent highs and iron ore futures hovering below $US95 a tonne.
Gold stocks were mixed as the precious metal held most of its recent gains at $US4,319 ($A6,116) an ounce.
Liontown and PLS each gained 2.7 per cent or more on the back of a recent upswing in lithium prices, while rare earths producers Lynas and Iluka also advanced.
Crude oil jumped to its highest price in almost a week as plans to reopen the Strait of Hormuz remained elusive, with the US and Iran again at an apparent stalemate to end their respective blockades of the crucial shipping route.
Local refinery operator Viva Energy traded lower despite Brent crude jumping to $US84.50 a barrel, while Santos edged higher and Woodside traded flat.
Health care stocks outperformed the other sectors, up 1.3 per cent on the back of strong runs from Cochlear, Mesoblast and ResMed.
In company news, I Squared Capital said it would acquire oOh! Media, after entering a $1 billion binding agreement, beating multiple private equity firms following an almost four-month bidding war.
Tabcorp shares jumped five per cent after the company announced it would buy wagering technology provider BetMakers in a $267 million deal.
Treasury Wine Estates advanced after announcing further writedowns of US assets to help rebalance its supply chain.
British retail and investment company Frasers Group wants Accent Group chair Lawrence Myers to step down after Accent was prompted to correct statements calling Frasers’ takeover bid “materially inadequate”.
The Australian dollar is buying 70.63 US cents, little changed from 70.64 US cents on Friday at 5pm AEST.
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