Nov 18 (Reuters) – Australian shares edged lower on Tuesday to hit their lowest levels in four months, as index heavyweights financials and miners fell further, while investors digested minutes of the central bank’s November policy meeting.
The S&P/ASX 200 index declined 0.7% to 8,575.10 by 2327 GMT, hitting its lowest point since mid-July. The benchmark had closed little changed on Monday.
Financials tumbled 1.2% and were headed for a sixth straight session of losses, with Commonwealth Bank of Australia shedding nearly 2% to hit its lowest point in seven months.
One of the most expensive banks in developed countries in terms of the price-to-earnings ratio, CBA has been battling frothy valuations concerns particularly after Australia’s top lender warned earlier this month that increased competition and lower interest rates would hurt its margins.
Westpac and National Australia Bank declined 1.6% and 1.1%, respectively, while ANZ Group was little changed.
Meanwhile, minutes of the Reserve Bank of Australia’s November policy meeting showed that it could keep the cash rate steady at the current level if incoming data surprises on the strong side, but there are also scenarios where it sees more policy easing.
Miners fell 1% and were poised for a third straight session of losses, weighed down by weak copper and gold prices.
BHP, Rio Tinto and Fortescue declined 1.1%, 0.5% and 0.1%, respectively. Among gold miners, Northern Star Resources fell 0.3%.
Technology stocks fell 4.2% to hit their lowest levels since late April, dragged down by a 9% drop in TechnologyOne after the enterprise software provider’s annual results missed market expectations.
Wall Street peers closed lower overnight as investors braced for quarterly earnings from AI bellwether Nvidia on Wednesday.
Logistics software maker WiseTech Global fell 3.5%, while accounting software provider Xero declined 2.1%.
Further south, New Zealand’s benchmark S&P/NZX 50 index fell 0.4% to 13,441.69. (Reporting by Nikita Maria Jino in Bengaluru; Editing by Subhranshu Sahu)
