Australia shares edge lower as heavyweight miners lose ground
- The S&P/ASX 200 was down 0.4% at 9,118.80
Australian shares edged lower as mining losses from weak commodity prices offset gains in technology and financials. Xero's strong performance boosted tech, while New Zealand's market hit a record high.
- Miners' decline due to weak iron ore and gold prices.
- Technology sector surge, led by Xero's share buyback and revenue jump.
- Commonwealth Bank of Australia facing legal action over alleged overcharging.
- New Zealand's benchmark index reaching a new record high.
Australian shares edged lower on Thursday as weak commodity prices hit heavyweight miners, although gains in most other sectors, led by technology stocks, limited losses.
The S&P/ASX 200 was down 0.4% at 9,118.80, as of 2326 GMT.
The benchmark retreated from a roughly 1.4% gain over the last three sessions.
Heavyweight miners, accounting for around a quarter of the resource-heavy bourse, slipped nearly 2%, with BHP Group and Rio Tinto down 1.6% and 1.9%, respectively.
Iron ore prices were pressured by anticipated steel output curbs in top consumer China, which are expected to dampen demand for the steel-making ingredient.
Separately, BHP, the world’s largest-listed miner, named insider Adrian Wood as its new finance chief, effective next year.
Gold miners added to the slump, down 3%, and extended losses for a second consecutive session.
Bullion prices remained under pressure as expectations of higher US interest rates strengthened.
Sector majors Northern Star Resources and Evolution Mining slipped 2.6% and 3.4%, respectively.
Bucking the broader trend, technology stocks surged 3.2%, hitting their highest level since late August. Accounting software maker Xero led the rally, gaining nearly 13% to a two-month high, after announcing a A$1 billion ($684.9 million) share buyback alongside a 46% jump in half-year revenue.
Other constituents in the sub-index WiseTech Global and Technology One added 1.9% and 1.3%, respectively.
Financials eked out a marginal 0.1% gain, with two of the “Big Four” banks trading in positive territory.
Separately, Australia’s corporate regulator has launched civil penalty proceedings against Commonwealth Bank of Australia over allegations of overcharging the lender’s business customers in fees they were not informed about.
Shares of CBA traded 0.6% higher. Elsewhere, healthcare stocks gained 0.4% while the real estate sub-index marginally rose 0.1%.
Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index was up 0.6% at 14,259.12, after earlier hitting a record high of 14,275.30.
Comments