Australian shares extend losses; Northern Star soars after naming new CEO

Australian shares extended declines on Thursday, following weak domestic housing data released in the previous session, while Northern Star Resources jumped on appointing a new CEO a month after activist investor Elliott built a stake in the gold miner.

The S&P/ASX 200 index fell 0.5% to 8,676.70 by 0012 GMT.

The benchmark fell 0.6% on Wednesday. Data released on Wednesday showed home prices in Australia suffered their steepest fall in three-and-a-half years in June due to high borrowing costs, weighing on overall sentiment.

Miners dragged the benchmark, with lower iron ore prices weighing on sentiment.

Top producers BHP and Rio Tinto dropped 1.2% and 1.3%, respectively.

Northern Star Resources helped limit broader losses by surging as much as 4%, its biggest intraday percent gain since mid-June.

The major gold miner named Suresh Vadnagra as its new chief executive officer, while posting preliminary annual gold sales that met revised guidance.

Higher overnight bullion prices after stronger-than-expected US jobs data and remarks from Federal Reserve Chair Kevin Warsh aided appetite for gold producers, with Ora Banda Mining jumping 6.9%.

Financials rebounded 0.3% after the selloff on Wednesday.

Top business lender National Australia Bank gained 2.2%, while Westpac added 0.7%.

Consumer discretionary stocks shed 2.2%, their biggest intraday drop since May 12, while staples slipped 1.4%, hurt by Coles’ 2.1% drop.

The no.2 grocer on Wednesday confirmed it is in talks to buy pet care firm Greencross Pet Wellness from US private equity firm TPG.

Meanwhile, energy stocks fell 1.7%, breaking a four-day win streak as oil prices dropped after Iran and the United States concluded a round of indirect talks on Wednesday.

Oil and gas producer Karoon Energy fell as much as 4.9%. In New Zealand, the benchmark S&P/NZX 50 index edged up 0.1% to 13,620.80.