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Australia shares recover on banks, telcoms; NZ soft

Published 20/04/2017, 01:23 pm
Updated 20/04/2017, 01:30 pm
© Reuters.  Australia shares recover on banks, telcoms; NZ soft

© Reuters. Australia shares recover on banks, telcoms; NZ soft

By Anusha Ravindranath

April 20 (Reuters) - Australian shares clawed back from three-week lows on Thursday as bargain hunters stepped in after the market was sold off in the last three sessions.

The S&P/ASX 200 index .AXJO rose 8.19 points, or 0.14 percent, to 5812.00 by 0251 GMT.

"Markets have pulled back to the previous break out level and so we're seeing some support from technical buys that are coming in because the price of the index has pulled back too," said Michael McCarthy, chief market strategist at CMC Markets.

Risk appetite had dented in the last few days hurt by a sustained weakness in commodity prices and as stocks tracked wider market weakness. stocks bounced back, leading the gains on the benchmark, with the 'big four' banks rising between 0.4 percent and 0.9 percent at one point.

Telecom stocks backed the gains as Telstra TLS.AX hit a one-week high, while rival TPG Telecom TPM.AX rose 2.2 percent, its highest since April 11.

"I think there is bargain hunting in the market today, particularly in the telco sector," said Bill Keenan, general manager of direct equities research at broker Lonsec.

Telstra shares were on a losing streak for four days after TPG won a spectrum auction on April 12. appears that investors have digested the placement from TPG, there is a reassessment of the space going on and some enthusiasm for the lower share prices we are seeing in the telecom sector," McCarthy added.

At the other end, energy stocks continued to be under pressure tracking overnight weakness in crude oil prices. O/R

Woodside Petroleum WPL.AX , Australia's largest independent oil and gas producer, dropped to a more-than two-week low after reporting a fall in quarterly revenue . miner Rio Tinto (LON:RIO) Ltd RIO.AX hit a one-week high after it maintained its annual iron ore shipment guidance despite weakening ore prices. Zealand's benchmark S&P/NZX 50 index .NZ50 lost 0.22 percent, or 15.56 points, to 7202.95 at 0249 GMT.

Data showed the inflation in the country rose to its highest in five years in the first quarter due to temporary gains from higher oil and food prices. and Industrial stocks weighed on the index. A2 Milk Company Ltd ATM.NZ was the top loser, falling 2.2 percent.

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