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Australia Market extends losses

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Capital Market
Last Updated : Oct 31 2019 | 10:31 AM IST
The Australian share market declined for second straight session on Thursday, 31 October 2019, as investors continued withdrawing profit off the table following recent rally, with big banks leading losses after weak set of quarterly earnings from Australia and New Zealand Banking Group. Investors shrugged off the US Federal Reserve's decision to cut interest rates on Wednesday. Around late afternoon, the benchmark S&P/ASX200 index declined 33.58 points, or 0.5%, to 6,655.90, while the broader All Ordinaries fell 29.20 points, or 0.43%, to 6,765.50.

Shares in banks were weighing heavily on the market following a weak set of quarterly earnings from ANZ Banking Group (ANZ) this morning. ANZ's stock traded as much as 3.5% lower, after cash profit slipped by 0.3% to A$6,470 million following remediation expenses, record low interest rates and plenty of competition. The Net Interest Margin fell by 8bps over the second half. While ANZ maintained its 80c/share final dividend, it decided to reduce franking from 100% to 70%. Commonwealth Bank of Australia, Westpac Banking Corp and National Australia Bank all fell between 0.9% and 1.5%.

Energy stocks decline inline with fall in oil prices, with Woodside Petroleum trading down 0.9%, while smaller rival Santos lost 1.7%. The smaller Beach Energy fell as much as 2.1%

Bellamy's (BAL) shares inclined by 1% after an independent report concluded that a takeover by a Chinese group is in shareholders' best interests. This brings the Tasmania based infant formula maker a step closer to being taken over.

Iluka (ILU) shares were up 5.7% as the mineral sands producer is reviewing options for a royalty it owns on BHP's iron ore operations in Western Australia. The royalty earned the group A$41m in H1CY19 and is expected to increase in coming years.

CURRENCY NEWS: The Australian dollar, sensitive to shifts in broader risk appetite, was up against greenback. The Australian dollar changed hands at $0.6920 after rising from levels below $0.688 yesterday.

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First Published: Oct 31 2019 | 10:16 AM IST

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