Updates to close
ASX200 down 6% from all-time high hit on February 14
Energy stocks slump around 3%, led by Woodside, Santos
Banks slip 0.9%
Air New Zealand falls 4% as CEO resigns
By Kumar Tanishk
March 6 (Reuters) - Australian shares finished at their lowest in 11 weeks on Thursday, led by a sell-off in banking stocks and a rout in energy firms as oil prices fell to multi-year lows on tariff uncertainties.
The S&P/ASX 200 index .AXJO dropped 0.6% to close at 8,094.7 points, the lowest close since late December 2024. The benchmark has now lost nearly 6% since its all-time high on February 14.
"If the ASX200 was to see a sustained break below 8,060/50 and then below the psychologically important 8,000 level, it would open the way for a sell-off to extend towards 7,600," Tony Sycamore, a market analyst at IG, said.
Financials .AXFJ, which constitutes more than a quarter of the benchmark, extended losses to the third consecutive session, dropping about 9% since mid-February when major banks posted weak quarterly results and the domestic central bank cut interest rates for the first time in five years.
Two of the "Big Four" banks fell as much as 1%, while National Australia Bank NAB.AX and ANZ Group ANZ.AX ended flat.
"The ASX200 financial sector is slipping ever closer to its February low after reporting season burst the bubble of the big banks," Sycamore said.
Meanwhile, Australia's prudential regulator proposed changes to tighten governance standards at banks and pension funds, including limiting the tenure of directors.
Energy stocks .AXEJ slumped 2.9%, their biggest daily drop since September 5, 2024, as sector majors Woodside Energy WDS.AX and Santos STO.AX declined 4.8% and 1.9%, respectively.
Oil prices rose after heavy sell-offs drove the market to a multi-year low, but tariff uncertainties and a rising supply outlook capped gains. O/R
New Zealand's benchmark S&P/NZX 50 index .NZ50 eked out marginal gains to finish at 12,428.84 points.
Flag carrier Air New Zealand AIR.NZ dropped 4% after announcing the departure of its Chief Executive Officer Greg Foran after five years at the helm.
(Reporting by Kumar Tanishk in Bengaluru; Editing by Sumana Nandy)
((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))
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