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ASX 200 benchmark extends five-day winning streak
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Financials log five days of consecutive wins
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Perpetual top loser on ASX 200
By Sneha Kumar
May 8 (Reuters) - Australian shares ended unchanged on
Wednesday as local stocks pared gains after adding 1.4% on
Tuesday as the Reserve Bank kept interest rates on hold and
signalled inflation was still high, while fund manager Perpetual
plunged 7% after private equity firm KKR said it would buy two
of its units.
The S&P/ASX 200 benchmark index closed 0.1% higher
at 7,804.5 points, extending winning streak to five days. The
benchmark rose 1.4% on Tuesday.
"There is some profit taking happening on the market
following Tuesday's solid gains (including in financials)," Tim
Waterer, chief market analyst at KCM Trade said.
The Reserve Bank of Australia's decision to hold cash rate
at the "right level" of 4.35% boosted investor sentiments but
concerns remained on the timeline for inflation to reach the
target of 2%-3%.
After the upside CPI surprise in first quarter, a future
rate hike can't be ruled out given the non-linear nature of
inflation, Waterer added.
Financial services firm Perpetual said that buyout
giant KKR & Co ( KKR ) would acquire its wealth management and
corporate trust businesses for A$2.18 billion ($1.43 billion).
The Australian financial services firm's shares hit a five-month
low on Wednesday.
On a five-day winning streak, rate-sensitive financials
inched 0.2% higher with the country's top lender
Commonwealth Bank of Australia ( CBAUF ) gaining 0.3%.
Meanwhile, fellow rate-dependent real estate stocks
extended gains to a fifth session to end 0.5% higher at
one-month high.
Mirvac Group ( MRVGF ) gained 0.5% while Dexus ( DEXSF )
climbed 0.7%.
Behemoth miners retreated 0.2%, snapping a four-day
winning streak as iron ore futures slipped on high inventories
at Chinese ports.
Giants BHP Group ( BHP ), Rio Tinto and Fortescue
all ended lower in the session.
Snapping a three-day winning streak, energy stocks
edged lower while gold stocks added 0.1%.
Losing for the third straight day, New Zealand's benchmark
S&P/NZX 50 index fell 0.2% to 11,782.89 points.
($1 = 1.5216 Australian dollars)