Australian shares subdued as banks, energy stocks weigh; Brickworks soars on merger

Reuters
06-02
Australian shares subdued as banks, energy stocks weigh; Brickworks soars on merger

June 2 (Reuters) - Australian shares had a subdued start to the week on Monday, as losses in banks and energy companies countered gains in gold stocks, while building materials maker Brickworks emerged as the top gainer after its merger deal with shareholder Soul Patts.

The S&P/ASX 200 index .AXJO eased 0.1% to 8,430.2 points by 0034 GMT. The benchmark had ended May 3.5% higher on Friday.

Brickworks BKW.AX jumped 18.1% to a record high and was set for its biggest single-day percentage gain since September 2009.

The company said it will merge with its major shareholder, Washington H Soul Pattinson SOL.AX, to form a A$14 billion ($9.03 billion) entity.

Soul Patts climbed 10% to its highest since September 2021 and was on track for its biggest intraday percentage gain since June 23, 2021.

Gold stocks .AXGD were among the benchmark index's major gainers after bullion rose 0.6% in early trade.

Technology stocks .AXIJ rose 0.2%, tracking gains in their US counterparts after the S&P 500 .SPX and the Nasdaq Composite .IXIC posted their biggest monthly gains since November 2023 on Friday.

Local players like Megaport MP1.AX and TechnologyOne added between 0.7% and 2.9%.

Bucking the mood, energy stocks .AXEJ fell 0.2% after oil ended lower on Friday. Santos STO.AX, Australia's second-largest oil and gas producer, was trading 1.3% in the red. Woodside Energy WDS.AX lost 0.2%.

Financials .AXFJ shed 0.2%, with the "Big Four" banks dropping between 0.1% and 1.5%. The Macquarie Group MQG.AX slipped 0.8%.

In other news, Australia's house prices rose for a fourth consecutive month to a record high in May as another interest rate cut boosted expectations of more to come.

The New Zealand stock market is closed for a public holiday.

($1 = A$1.5499)

(Reporting by Rishav Chatterjee in Bengaluru; Editing by Sumana Nandy)

((Rishav.Chatterjee@thomsonreuters.com;))

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