Aug 8 (Reuters) - Australian shares on Tuesday saw much of the previous day’s gains disappear, with Commonwealth Bank of Australia falling in the wake of money-laundering allegations, while industrial and material stocks slipped on disappointing earnings.
The S&P/ASX 200 index fell 35.86 points, or 0.6 percent, to 5,737.7 at 0420 GMT, after starting marginally higher. The benchmark rose 0.9 percent on Monday.
Commonwealth Bank of Australia fell nearly 1.3 percent, dogged by financial intelligence agency AUSTRAC’s money-laundering allegations. The bank blamed a “coding error” for breaches of rules.
Australia’s biggest lender on Tuesday scrapped its chief executive’s bonus , but said he retains the board’s confidence.
Shares of the other “Big Four” banks fell between 0.5 percent and 1 percent.
After the allegations, “there is just a degree of nervousness at the moment that CBA might not be the only institution that’s going to come under the spotlight from AUSTRAC,” said James McGlew, executive director of corporate stock broking for Argonaut in Perth.
Transurban Group fell as much 3.5 percent after missing estimates for annual profit. The toll road developer reported statutory profit from ordinary activities of A$209 million ($165.49 million) for the year, compared with estimates of A$288.48 million, according to Thomson Reuters I/B/E/S.
James Hardie Industries Plc, one of the world’s biggest fiber cement building materials maker, slid 6.6 percent to its lowest since April, 2016 after reporting a 34 percent drop in quarterly net profit.
Miners bucked the tide of losses, helped by solid iron ore prices. BHP Billiton rose 1.3 percent and Rio Tinto climbed 1.4 percent.
Markets reacted little to a survey showing one measure of Australian business conditions in July hit its highest since early 2008.
New Zealand’s benchmark S&P/NZX 50 index rose 0.8 points, or 0.011 percent, to 7,772.4 at 0420 GMT.
Fisher & Paykel Healthcare Corporation Ltd rose 1.4 percent to its highest in over a month, marginally tipping the index towards positive territory, away from losses accumulated by Trade Me Group Ltd and Skycity Entertainment Group Ltd.
$1 = 1.2629 Australian dollars Reporting by Chris Thomas in Bengaluru; Additional reporting by Nicole Pinto; Editing by Richard Borsuk