Updates to close
By Jasmeen Ara Islam Shaikh
Dec 29 (Reuters) - Australian shares fell on Monday, kicking off the final trading week of the year on a quiet note as banks and miners led losses, easing from recent highs as light holiday turnover exaggerated moves across the market.
The benchmark S&P/ASX 200 index .AXJO dropped 0.42% to 8,725.70, with turnover at about half its 30-day average as investors returned from the Christmas and Boxing Day break.
The index has gained more than 7% this year and is on track for a third straight annual rise, up roughly 24% since 2022, when it last logged a yearly decline.
"Sentiment is lukewarm as we round out the year....There's not much of a directional bias overall - a slightly negative skew, if anything," said Kyle Rodda, Senior Financial Market Analyst at Capital.com.
The mining sub-index .AXMM fell 0.4% as heavyweights eased from record highs, tempering the boost from firmer iron ore and copper. The gauge had gained 3.7% across the prior three sessions. IRONORE/
Gold miners .AXGD also gave back early advances after briefly touching new peaks. GOL/
Silver names outperformed, with Investigator IVR.AX up 36.4%, Silver Mines SVL.AX rising 18.4% and Advance Metals AVM.AX climbing 19.2% as silver prices extended their rally. MET/L
Financials .AXFJ declined 0.5% in their second straight day of losses. Westpac WBC.AX and NAB NAB.AX slipped 0.5%, Commonwealth Bank CBA.AX eased 0.3%, while ANZ ANZ.AX bucked the trend with a 0.4% gain.
Front-end rate pressures are lifting funding costs without boosting lending margins, while slower credit growth and rising arrears add to strain, Rodda added.
Star Entertainment SGR.AX rose 7.7% after its chief financial officer exited the embattled casino-operator.
Woodside Energy WDS.AX eased 0.4% even as the oil major inked a supply deal with Turkish state-owned BOTAS.
New Zealand's benchmark S&P/NZX 50 index .NZ50 ended flat at 13,525.99 in the session and is set to record its third straight year of gains.
(Reporting by Jasmeen Ara Shaikh in Bengaluru; Editing by Nivedita Bhattacharjee)
((Jasmeenaraislam.shaikh@thomsonreuters.com))