SYDNEY: Australian shares eked out gains on Monday as investors backed commodity-linked stocks over banks, with ANZ’s margin squeeze souring sentiment toward the major lenders.
ANZ, the country’s fourth-largest lender by market capitalisation, fell 3.2 percent to post its weakest session in over 8 months after its net interest margin, a key profitability gauge, shrank even as annual profit rose.
The drop is a “classic sell the fact behaviour,” said KCM Trade chief market analyst Tim Waterer, adding that the market had already priced in a decent margin outcome, so the numbers failed to surprise on the upside.
Financials slipped 1.1 percent to mark their worst day since October 14, with the other three ‘Big Four’ banks down between 0.6 percent and 1.4 percent.
Top lender Commonwealth Bank of Australia is due to report results later this week.
Despite the drag from banks, the S&P/ASX 200 edged up 0.1 percent to 9,029.70. Last week, the benchmark rose 1.3 percent — better than the United States and parts of Asia because of its low exposure to the AI names.
Australia’s status as a relative safe harbour does not make the banks automatic winners when risk appetite turns, Waterer said.