SYDNEY: Banking stocks led the decline in Australian shares on Friday, while miner Rio Tinto fell on reports of failed merger negotiations with rival Glencore. The S&P/ASX 200 closed 0.2% lower at 8,310.4 points. The benchmark ended the week up 0.2%.
Shares of Rio Tinto fell 0.7%, logging their worst session in over a week, after reports of unsuccessful merger talks between the world’s No. 2 miner and Glencore, one of the world’s biggest miners of coal and base metals.
Financials led sectoral declines on Friday, dipping 1% to log their worst week in four. The ‘big four’ banks fell 1.2%-1.8%. Tim Waterer, chief market analyst at KCM Trade, said the fall was likely due to profit-booking in the sector following recent gains.
The index rose about 2.6% on Thursday, but ended the week 0.6% lower. Miners gained 0.5% as iron ore prices jumped after better-than-expected GDP data from top consumer China.
The index logged its best week since Nov. 18. China, which is one of Australia’s key trading partners, said its fourth-quarter GDP grew 5.4% year-on-year, beating market estimates. Gold stocks rose 0.3% on higher bullion prices. The index logged weekly gains of 5%, the most since late November.
Among individual stocks, Insignia Financial surged 6.5%, hitting its highest since October 2021, after it received a revised offer from US-based CC Capital Partners to acquire the money manager for A$3.07 billion ($1.91 billion).
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