Australian shares edge lower as bank, mining losses outweigh Origin-led utility gains

Australian shares experienced a minor decline on Thursday, largely due to losses in the banking and mining sectors, while gains in utilities provided some relief. The S&P/ASX 200 index dropped 0.3%, closing at 9,181.60 by 0040 GMT. On Wednesday, the benchmark had fallen 0.5%. Financials experienced a 0.2% decrease, with Insurance Australia Group suffering a 5.4% drop, largely due to lower investment income and higher claims expenses resulting from adverse weather conditions.

However, ANZ Group's 2.9% gain helped offset some of these losses, as the lender reported a modestly higher annual profit. Among other financials, CBA declined by 2%, whereas Westpac and NAB rose by 0.8% and 1%, respectively. The mining sector saw a 0.4% decline, driven by falling metal prices, with Rio Tinto falling 2.6% and South32 dipping 0.8%.

In contrast, utilities managed a 3.2% gain, propelled by Origin Energy's full-year underlying profit that surpassed analysts' estimates. A notable exception was ASX, which surged up by 9.9%, marking its best trading session since mid-March 2020, thanks to global market volatility driving trading and post-trade activity. Meanwhile, Treasury Wine Estates experienced mixed fortunes after reporting an annual loss, partly due to significant write-downs on its US business.

On the corporate acquisition front, Cleanaway Waste Management surged by 16.9%, marking its best session in 15 years, following a $6.63 billion takeover offer from EQT Infrastructure. Across the Pacific Ocean, New Zealand's S&P/NZX 50 index edged up by 0.4% to 13,798.43.