Australian shares edge lower as bank, mining losses outweigh Origin-led utility gains

Australian shares fell on Thursday, dragged lower by heavyweight banking and mining stocks, while gains in utilities helped cushion the decline after Origin Energy reported annual profit ahead of estimates.

The S&P/ASX 200 index fell 0.3% to 9,181.60 by 0040 GMT.

The benchmark ended 0.5% lower on Wednesday. Financials fell 0.2%, with Insurance Australia Group tumbling 5.4% after a drop in full-year cash earnings, hurt by lower investment income and rising claims expenses due to inclement weather.

But a 2.9% gain in ANZ Group helped limit losses in the sector, after the lender reported a slightly higher annual profit.

Peers Commonwealth Bank of Australia lost 2%, while Westpac and National Australia Bank added 0.8% and 1% respectively.

Miners lost 0.4%, hurt by a fall in metal prices.

Heavyweight Rio Tinto was down 2.6%, while peer South32 dipped 0.8%.

Countering losses, utilities gained 3.2% on the back of power producer Origin Energy. The company reported full-year underlying profit that slightly beat analysts’ estimates.

Among individual stocks, bourse operator ASX climbed up as much as 9.9%, logging its best session since mid-March 2020.

ASX reported a more than 5% rise in annual underlying profit, helped by heightened global market volatility that drove trading and post-trade activity.

Meanwhile, Treasury Wine Estates swung between gains and losses after the winemaker reported an annual loss after booking hefty write-downs on its US business.

On the dealmaking front, Cleanaway Waste Management surged 16.9% to mark its best session in 15 years.

The Melbourne-based waste solutions provider said it would grant EQT Infrastructure exclusive due diligence after receiving an A$9.4 billion ($6.63 billion) takeover offer.

In New Zealand, the benchmark S&P/NZX 50 index rose 0.4% to 13,798.43.