Australia shares fall on NAB home loan woes; JB Hi-Fi results weigh on retailers

JB Hi-Fi

17/08/2026 07:56

NAB shares close 4.6% lower; Financials fall 1.8%
Discretionary stocks shed 3%; weak JB Hi-Fi sales weigh
Miners, energy stocks gain 1.9% and 0.9%
Updates to close
By Nichiket  Sunil
Aug 17 (Reuters) - Australian shares fell on Monday, weighed down by NAB after it became the last of the major banks to report a drop in housing credit growth, while retailers dropped on JB Hi-Fi's weaker sales sounded alarms over a drop in non-essential spending.
The S&P/ASX 200 index .AXJO closed down 0.5% at 9,073.20 points. On Friday, the benchmark closed 0.8% lower.
Shares of National Australia BankNAB.AX ended down 4.6% at A$39.46, its lowest closing level since July 22. NAB, Australia's third-largest home lender, cut its housing credit forecasts and was the last of the 'big four' banks to report a decline in home loan applications.
"While NAB’s business credit exposure remains a structural strength, it wasn't enough to offset the softening home loan demand and rising mortgage stress provisions," said Emanuel Ajay Datt, MD of Datt Group.
The country's "Big Four" banks, which write the majority of the A$2.4 trillion in mortgages, reported double-digit slowdowns in home loan applications since the tax changes announced in May, sending down their shares. ANZ ANZ.AX bucked the trend on reporting lower costs.
On the day, the remaining banks followed NAB to lose between 0.9% and 2.6% and drag the broader financials sub-index .AXFJ 1.8% lower.
Meanwhile, discretionary stocks .AXDJ closed 3% lower after electronics retailer JB Hi-FiJBH.AX plunged over 12% to its lowest closing level since early June on posting weaker domestic sales.
JB Hi-Fi's weaker sales point to a slowdown in discretionary spending as Australians grapple with persistent inflation and elevated borrowing costs, fuelling concerns about the outlook for the retail sector.
"We expect that retailers lacking non-discretionary exposure or strong margin buffers will face prolonged pressure as sticky inflation keeps household budgets tight," Datt added.
Most stocks in the sub-index dropped. Super Retail GroupSUL.AX and Harvey NormanHVN.AX shed 6.6% and 4.6% respectively.
Limiting the losses, miners .AXMM gained 1.9% on higher copper and gold prices, while rising oil prices due to stalling Middle East peace talks pushed energy stocks .AXEJ up 0.9%.
New Zealand's benchmark S&P/NZX 50 index .NZ50 ended down 1% at 13,721.98.

 (Reporting by Nichiket Sunil in Bengaluru; Editing by Nivedita Bhattacharjee)
 ((Nichiket.Sunil@thomsonreuters.com;))