SYDNEY: Australian shares closed lower on Friday, rounding off their worst week in nearly two-and-a-half years as banking stocks went on a seven-session losing streak that was exacerbated by the central bank’s first rate cut in five years.
The S&P/ASX 200 index closed 0.3% lower at 8,296.2 points on the day. It tumbled 3% this week, its biggest such drop since September 2022.
Financial stocks slid 1.3% on the day, falling more than 1% for the fourth straight session since the Reserve Bank of Australia (RBA) cut rates, threatening margins already under pressure from intense competition. Earlier this week, Westpac reported lower margins for the quarter.
The financial index has tumbled 7.5% in the past five sessions, its worst week since March 2020.
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