0130 GMT - The outperformance of Australian banking stocks over mining ones "is looking tired," Citi analysts say in a note. Since the start of 2024, Australia's banks have outperformed the S&P/ASX200 by roughly 27%, while materials stocks have underperformed the index by the same amount, the analysts say. The two sectors account for some 45% of the Australian market, so "getting the sector tilt right is one of the crucial calls for portfolio managers," they say. While the analysts aren't especially bullish on miners, they say investors should be mindful of their positioning. For banks, valuations look full and earnings expectations are being downgraded. Miners look better value and have some better earnings momentum, they say. Among miners, they highlight a buy rating on BHP. They say NAB and CBA are their top sell calls. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

(END) Dow Jones Newswires

June 04, 2025 21:30 ET (01:30 GMT)

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