AU Evening Wrap: Australia Shares Fall 0.1% in Fifth Straight Loss

Australia's $S&P/ASX 200(.XJO.AU)$ closed 0.1% lower at 7605.6, notching its longest losing streak since mid-January amid weakness in commodity stocks. The benchmark index rallied from an early slip only to drop into the red again in the final moments of trade. The ASX 200 is down 2.3% so far this week and on a run of five losses.

The materials sector lost 0.4% as iron-ore giant $BHP Group Ltd(BHP.AU)$ fell 1.2%. Rival $Rio Tinto Ltd(RIO.AU)$ closed flat despite a softer-than-expected 1Q performance. $Lynas Rare Earths Ltd(LYC.AU)$ pared sector losses, adding 5.9% on news that Australia's richest person had become a substantial shareholder.

During the first quarter, $Rio Tinto Ltd(RIO.AU)$'s iron ore production was 2% lower compared to the same period in 2023, with the miner producing 77.9 million tonnes. The decrease was primarily due to planned ore depletion at the Yandicoogina minesite. Meanwhile, shipments amounted to 78 million tonnes, which is 5% lower than Q1 2023. The company attributed the lower volumes to weather disruptions at the ports that led to a lower stock draw-down than the previous year, as well as reduced production at the mines. Despite the dip, Rio Tinto's production guidance for all operations remained unchanged.

$Bank of Queensland Ltd(BOQ.AU)$'s net profit for the first half of the year rose significantly to A$151 million, compared to just A$4 million in the previous year. However, the regional lender reported a 33% decrease in cash earnings to $172 million for the six months ending in February. The company attributed the significant fall in earnings to competition for lending, higher funding costs, inflation and investment risk, compliance and technology expenses. BoQ also revealed that net-interest margins, a key profitability metric, had dropped by 24 basis points to 1.55%. The bank also reduced its interim dividend to 17¢ per share, down from 20¢ per share in the previous financial year, amid growing speculation about the future of regional banks due to their outsized regulatory burden and smaller scale relative to larger competitors.