Australian shares declined on Friday, dragged down by financials, but the benchmark index remained set to post its best August since 2009, driven by a stellar earnings season that is drawing to a close and bets for further rate cuts.
By 0045 GMT, the S&P/ASX 200 index fell 0.3% to 8,957.10, just 97.4 points away from the record high hit on Monday.
The benchmark index has advanced 2.7% so far in August and was set for its fifth consecutive month of rise.
Gains were supported by hopes of further policy easing, after the Reserve Bank of Australia cut rates earlier this month, while the US Federal Reserve is also expected to lower rates in September.
The strong performance was also driven by outsized gains from companies such as Qantas, IDP Education, Aussie Broadband, Brambles and other companies, following their strong results.
Meanwhile, heavyweight financials lost 0.8%, after rising more than 1% on Thursday.
The sub-index, which drove much of the gains on the benchmark this year, was set for a more than 3% rise this month. The Commonwealth Bank of Australia, the National Australia Bank and Westpac shed more than 1%.
Healthcare stocks retreated 0.8%, with biotech firm CSL falling 0.3%.
Bucking the trend, technology stocks rose 2.3%, tracking the S&P 500 and Dow Jones Industrial Average’s record close overnight.
Among individual stocks, Harvey Norman climbed as much as 14.7% to a record high on annual profit beat and flagging a strong start to fiscal 2026. Austal soared as much as 19.6% to a record high on strong annual results.
Meanwhile, Lynas Rare Earths slipped 5% on announcing a discounted equity raise of A$750 million ($487.4 million) and posting a huge drop in annual profit.
New Zealand’s benchmark S&P/NZX 50 index gained 0.2% to 12,930.24.
Comments
Comments are closed for this article.