Australian shares are down as consumer and bank stocks fall; commodity stocks hold back losses
Australian shares fell on Monday, as losses in consumer and financial stocks were offset by gains in commodities. Meanwhile, 'Vault Minerals' surged to its highest level in four months after Genesis Minerals made a $5.6 billion takeover offer.
The S&P/ASX 200 Index?fell?0.2% at 08826, as of 0008 GMT, after posting its biggest daily gain in over three weeks on Friday.
Despite the initial U.S. and Iran agreement, some shipping through the Strait of Hormuz has resumed. However, there is still uncertainty after the last?months' exchange of strikes in response to Iran's attack against a cargo ship.
The "Big Four" Australian banks fell between 0.3% to 0.8%, while heavyweight financials in Sydney fell 0.6%.
Woolworths and Coles led the declines with respective drops of 1.1% and 1.3%. This sector has slowed down by 1.6% this month, after a 13% increase in June.
The subindex’s relative strength index has fallen from recent highs but is still near 70, which is usually associated with overbought situations.
Gold stocks, which were able to limit losses, rose by 0.4%, and are on track to have a third consecutive session of gains. This is in line with the bullion price's upward trend.
Vault Minerals soared up to 12.9%, reaching near four-month highs, after Genesis Minerals announced a takeover offer of A$5.6 billion (3.88 billion dollars), surpassing Regis Resources’ proposal from May.
Vault was the best performer on both the benchmark index as well as the gold subindex.
The?copper price rose by 0.4% on Friday. BHP, Rio Tinto and Fortescue all rose between 0.2% and 2.0%.
Woodside and Santos gained 0.6% each after Morgan Stanley upgraded both companies.
The benchmark S&P/NZX 50 Index in New Zealand rose by 0.6% to 13,698.66.
Investors are now focused on the Reserve Bank of New Zealand policy decision that will be made?later in the week. Markets have priced in a near 80% chance of an increase to the current cash rate of 2.25%.
(source: Reuters)
