Fortescue falls 3.9%, logs lowest close since August 8
Coles soars 8.5% to record close
Consumer staples end 3.2% higher
Updates to close
By Nichiket Sunil
August 26 (Reuters) - Australian shares ended lower on Tuesday, dragged down by miners after iron ore major Fortescue posted its weakest annual profit in six years, while gains in local grocer Coles on strong annual sales helped cap losses.
The S&P/ASX 200 index .AXJO lost 0.4% to close at 8935.6 points. The benchmark had scaled a record high of 9,054.5 points but pared gains to finish 0.1% higher on Monday.
The mining sub-index .AXMM fell 1%, led by Fortescue's FMG.AX 3.9% drop after the world's fourth-largest iron ore miner reported its lowest full-year profit in six years and trimmed its dividend payout.
The lower dividend payout stood out for Fortescue, making it drag the sub-index lower, Junvum Kim, a senior sales trader at Saxo Asia Pacific, said.
The added pressure from subdued iron ore prices knocked down other miners too, with global mining major BHP BHP.AX closing 1.1% lower. IRONORE/
Rate-sensitive financials .AXFJ also weighed on the benchmark, falling 0.4%.
The minutes of the Reserve Bank of Australia's $(RBA)$ August 11-12 policy meeting showed the likelihood of more rate cuts ahead, with markets pricing in only a 37% chance in September, while showing more optimism for a November cut. 0#AUDIRPR
Consumer staples .AXSJ jumped more than 3%, helping cushion the blow. The sub-index logged its highest close in a year, helped by Coles COL.AX, whose consensus-beating sales revenue print sent its shares up 8.5% to a closing high.
Australia's No.2 supermarket chain operator said its sales revenue grew by 4.9% in the first eight weeks of fiscal year 2026, outpacing a Visible Alpha consensus of 3.6% growth in the first six months.
Its bigger rival Woolworths WOW.AX, due to report annual earnings on Wednesday, added 2.5%.
New Zealand's benchmark S&P/NZX 50 index .NZ50 lost 0.9% to close at 12,957.98 points.
(Reporting by Nichiket Sunil in Bengaluru; Editing by Sumana Nandy)
((Nichiket.Sunil@thomsonreuters.com;))
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