Australian shares end lower; New Zealand keeps rates on hold

Web Travel

22/05/2024 07:25

* 
      RBNZ keeps cash rate unchanged
    

        * 
      Global investors assess Fed official's comments for
clarity on
rate cuts
    

        * 
      Webjet top gainer on benchmark after positive annual
results
    

  
 (Updates to close)
    By Sherin Sunny
       May 22 (Reuters) - Australian shares ended slightly
lower on Wednesday as a rally in mining and banking stocks was
offset by a drag in gold and energy shares while investors in
New Zealand took cues from the local central bank's monetary
policy meeting.     
    The S&P/ASX 200 index  .AXJO  closed 0.1% lower at 7,848.10
points.
        New Zealand's  .NZ50  closed the day 0.5% higher at
11,732.28 points after the central bank decision.
    The Reserve Bank of New Zealand held its cash rate steady at
5.5% as expected, but lifted its forecast peak for rates and
expects to not start cutting rates until the third quarter of
2025, citing persistent inflation.
    Analysts at ANZ Research said in a note that the unchanged
cash rate was expected, while the RBNZ raising its forecast peak
was a shock to markets. They expect the first rate cut in May
2025.
    Global investors now await minutes of the U.S. Federal
Reserve's latest policy meeting.
    In Australia, digital travel business Webjet  WEB.AX 
emerged as the top gainer as it posted a 40% jump in its annual
earnings. Shares closed the session 7.7% higher. The country's
largest telecommunications firm, Telstra Group  TLS.AX , was a
major drag, ending the day 4.2% lower at A$3.4. 
    Analysts have signalled a poor outlook and share performance
by telecom firm after it declared plans to stop its traditional
annual inflation-linked price adjustments for mobile plans amid
stiff competition. 
    Among sub-indexes, mining stocks  .AXMM  closed 0.2% higher
tracking surging iron-ore prices on improved demand prospects
from top customer China.  IRONORE/ 
    Mining behemoths BHP  BHP.AX  and Rio Tinto  RIO.AX  closed
0.7% and 1.7% higher, respectively.
       Rate-sensitive financials  .AXFJ  closed 0.3% higher with
the three of the "Big Four" banks closing between 0.2% and 1.2%
higher. Commonwealth Bank of Australia  CBA.AX  closed 0.2%
lower.
        Among other sub-indexes, gold stocks  .AXGD  and energy
stocks  .AXEJ  closed 0.8% and 0.7% lower, respectively. 
         

 (Reporting by Sherin Sunny in Bengaluru; Editing by Nivedita
Bhattacharjee)
 ((Sherin.Sunny@thomsonreuters.com))
 
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