Major banks extended their decline on Tuesday with Westpac, the hardest hit, down 3.7 per cent.
Australian shares dropped to their lowest level in a month on Thursday, led by the big four banks as investors fret about how much the lenders will need to set aside for bad loans as interest rates rise.P/ASX 200 shed 1.42 per cent, or 101.4 points, to close at 7019.7 points. The All Ordinaries benchmark, which tracks a wider range of companies, gave back 106.6 points, to 7240 points, to close 1.45 per cent lower.
“To have near-record highs when interest rates are going up and the market is very weak – banks had really escaped all consideration of risks and this is now just a repricing of that risk coming in,” he said.Mr Sequeira said rates and concerns about bad debts were not just affecting the big four but the broader financial sector.
CBA, Westpac and NAB were among the top-10 large cap laggards through losses of between 2.3 per cent and 3.7 per cent. ANZ was not far behind, off 1.9 per cent. Mining giants retreated on Thursday. BHP Group was down 2.5 per cent, Rio Tinto 1.44 per cent lower and Fortescue off 0.4 per cent.Magellan shares rose 2.9 per cent to $12.91 after co-founder Hamish Douglass announced he would return to the company as a consultant, providing investment insights across geopolitical and macroeconomic issues.
Mr Douglass will no longer be a permanent staff member as of the middle of this month and will start in his new role in October. The starting date of new CEO David George has been brought forward to July 19, from August 8.Mr Sequeira said the market was relieved that Mr Douglass’ role had been confirmed.
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