Australia shares slide on bank funding concerns, NZ stocks fall

Millennium & Copthorne Hotels New Zealand

03/08/2016 04:00

By Colin Packham and Charlotte Greenfield 
    SYDNEY/WELLINGTON, Aug 3 (Reuters) - Australian shares fell 
on Wednesday as concerns over wholesale funding of the country's 
financial sector pushed the benchmark index to a near two-week 
low.     
    The S&P/ASX 200 index  .AXJO  was down 0.92 percent to 
5,489.8 points at 0229 GMT, near the session trough of 5,481.7, 
the lowest since July 22. On Tuesday, the benchmark dropped 0.84 
percent. 
    New Zealand's benchmark S&P/NZX 50 index  .NZ50  fell 0.39 
percent or 28.54 points to 7,300.66 points. 
    Analysts attributed Australia's decline to concerns over 
wholesale funding issues the financial sector appears to be 
facing. 
   After the central bank on Tuesday cut the country's key rate 
by 0.25 percent, commercial banks passed less of that reduction 
to mortgage holders. The banks also raised term deposits, a move 
seen as attempting to raise capital without tapping the 
wholesale market.  
    "There is a lot of questioning about whether the banks have 
signalled to the market that they are getting to the point where 
net interest margins are becoming a concern," said Evan Lucas, 
market strategist, IG Markets.  
    Shares in National Australia Bank Ltd  NAB.AX  fell more 
than 2 percent, while Australia and New Zealand Banking Group 
 ANZ.AX , Westpac Banking Corp  WBC.AX  and Commonwealth Bank of 
Australia  CBA.AX  shed more than 1.5 percent. 
    Seven Group Holdings Ltd  SVW.AX  rose nearly 6 percent 
after the company posted a better-than-expected 10 percent fall 
in annual net profit, with rising commodity prices patching over 
problems in the media business.  urn:newsml:reuters.com:*:nL3N1AK06Z 
    Meanwhile, New Zealand shares were poised for a second 
consecutive decline. 
    Sky TV  SKT.NZ  led losses, falling 2.2 percent, while 
chicken producer Tegel  TGH.NZ  lost 1.8 percent. 
    New Zealand Oil & Gas  NZO.NZ  fell 2.1 percent after the 
company announced the resignation of its CEO.  urn:newsml:reuters.com:*:nL3N1AJ5HH 
    CDL Investments New Zealand rose nearly 2 percent after 
reporting higher first-half profit.  urn:newsml:reuters.com:*:nL3N1AK002 
    Millennium & Copthorne Hotels New Zealand Limited  MCK.NZ  
rose 8.3 percent after the hotel operator posted strong 
half-year profits.  urn:newsml:reuters.com:*:nL3N1AK01T 
     
    For more individual stocks activity click on  STXBZ          
 
 (Editing by Richard Borsuk) 
 ((colin.packham@thomsonreuters.com; +61-2 9321 8161; Reuters 
Messaging: colin.packham.thomsonreuters.com@reuters.net)) 
  
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Keywords: AUSTRALIA STOCKS/ MIDDAY