Australian shares ease as banks, consumer stocks drag; commodity stocks limit losses

Australian shares edged lower on Monday as losses in financials and consumer stocks offset gains in commodities stocks, while Vault Minerals surged to a near four-month peak after a $5.6 billion takeover approach from Genesis Minerals.

The S&P/ASX 200 index fell 0.2% to 8,826, as of 0008 GMT, after the benchmark posted its strongest daily gain in more than three weeks on Friday. Some shipping has resumed through the Strait of Hormuz under the initial US-Iran agreement, but uncertainty remains after last month’s exchange of strikes following Iran’s attack on a cargo vessel.

In Sydney, heavyweight financials fell 0.6%, with the “Big Four” banks down between 0.3% and 0.8%. Consumer staples lost 0.9%, with supermarket giants Woolworths and Coles leading declines, falling 1.1% and 1.3%, respectively.

The sector has eased 1.6% so far this month after rallying about 13% in June.

The subindex’s relative strength index has retreated from recent highs, but remains near the 70-level, which is typically associated with overbought conditions. Limiting losses, gold stocks rose 0.4% and were on track for a third straight session of gains, tracking bullion prices higher.

Vault Minerals surged as much as 12.9% to near four-month highs after Genesis Minerals unveiled a A$5.6 billion ($3.88 billion) takeover bid, surpassing Regis Resources’ proposal made in May.

Vault was the top performer on both the benchmark index and the gold sub-index. Miners gained 0.4%, tracking advances in copper prices on Friday. BHP, Rio Tinto and Fortescue rose between 0.2% and 2.1%.

Energy stocks added 0.5%, led by Woodside and Santos, which each gained 0.6% after Morgan Stanley upgraded both companies.

In New Zealand, the benchmark S&P/NZX 50 index rose 0.6% to 13,698.66.

Investors are now focused on the Reserve Bank of New Zealand’s policy decision later this week, with markets pricing in near 80% probability of a rate increase from the current 2.25% cash rate.