Westpac and Bendigo bank has dragged the ASX200 lower

Banks weighed on the ASX on Monday with disappointing earnings updates from Westpac and Bendigo Bank pushing the index to the red.

Weak results from the likes of Bendigo Bank and Westpac have dragged down the overall Australian sharemarket on Monday, despite a number of positive earnings results.

The benchmark ASX200 index dropped 18.70 points or 0.22 per cent to finish Monday’s session at 8537.10 points.

The market recovered strongly in the afternoon session, after falling to 8480.00 points on the opening bell.

The broader All Ordinaries fell 13.20 points or 0.15 per cent to 8811.90.

The Australian dollar rose 0.18 per cent to 63.67 US cents.

The ASX 200 fell on Monday, although pared back most of its losses. Picture: NewsWire / Max Mason-Hubers

Earnings season on Monday was dominated by the major banks, with Westpac and Bendigo Bank underperforming expectations dragging the market as a whole lower.

Westpac’s net profit declined by 9 per cent although the business still posted a $1.7bn quarterly profit. Shares closed heavily in the red down 4.06 per cent to $33.30.

The results were weaker out of Bendigo and Adelaide Bank which reported a half-year statutory profit of $216.8m, a 23.2 per cent decrease on the same time last year. Shares dropped 15.28 per cent to $11.37.

Capital.com senior financial market analyst Kyle Rodda said the market reacted negatively to the major financial company’s results.

“The financials were the main drag on the market, unwinding some of the positivity towards the sector engendered by a looming rate cut and solid CBA results last week,” he said.

“A drop in profits for Westpac last quarter and bigger contraction in net interest margins for Bendigo Adelaide Bank saw both stocks drop and the overall sector weaken.”

CBA fell 0.28 per cent to $164.97 while NAB is down 1.15 per cent to $40.52 and ANZ retreated 0.42 per cent to $31.16.

There was also weakness in the gold stocks after the price of the precious metal fell on Friday. Over the weekend, the price of gold rose above $US2900 a tonne before retreating to $US2886 during Monday’s trading.

Despite seven of the 11 sectors finishing in the green, the market still fell during Monday’s trading. Picture: NewsWire / Max Mason-Hubers

Seven of 11 sectors rose with utilities, consumer staples, property, consumer discretionary, health care, industrials and tech outperforming.

A2 Milk has upgraded full-year revenue guidance thanks to a 10 per cent increase in first-half revenue to $NZ893.8m. Shares in the alternative milk company rose 19.66 per cent to $7.12 as the company plans on paying out its first ever dividend of 8.5 NZ cents per share.

Australia’s biggest steelmaker, BlueScope lifted its interim dividend by 20 per cent to 30c per share despite net profit after tax down 59 per cent to $179.1m. Shares jumped 13.288 per cent to $25.32.

During a presentation to shareholders, BlueScope steel managing director and chief executive Mark Vassella said the price of steel had jumped 20 per cent since the tariff announcement.

“The new administration has certainly turned Washington on its ear,” he said.

“Since the Trump announcement, we’ve seen prices go up, futures strengthen.”

Technology company Audinate was the major winner of the day, up 26.64 per cent to $9.60, despite revenue falling 38 per cent to $US18.9m and gross profit dropping down 29 per cent to $US16m. In its guidance, the company predicts 2025 to remain soft, before normalising in 2026.

Star Entertainment group also soared 14.58 per cent to 13.7 cents on news asset manager Oaktree Capital has offered 65c in the dollar to buy Star Entertainment Group’s debt.

Adore Beauty announced it was on track to roll out more than 25 new brick-and-mortar stores, although shares traded flat at $0.84.

Originally published as Westpac and Bendigo bank has dragged the ASX200 lower