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.

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