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Financial stocks support flat Australia and NZ bourses

Published 09/08/2016, 12:10 pm
Updated 09/08/2016, 12:20 pm
© Reuters.  Financial stocks support flat Australia and NZ bourses
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SYDNEY/WELLINGTON, Aug 9 (Reuters) - Australian and New Zealand markets were steady on Tuesday, though earnings announcements drove volatility in individual stocks.

The biggest mover was Australia and New Zealand Banking Group ANZ.AX , rising as much as 3 percent. Despite the company posting a small fall in nine-month cash profit the company said its net interest margins were stable. the S&P/ASX 200 index .AXJO added just 7.1 points or 0.14 percent to 5,545 by 0200 GMT.

"The market's essentially being held up by one sector and that's the financials," said Steven Daghlian, market analyst at Commonwealth Securities.

"The big four banks are holding it up and there is a risk that if the excitement dies off later today, we could very well finish up in negative territory this afternoon."

Elsewhere there were falls.

Shares in Cochlear Ltd, which reported a 30 percent rise in profits, traded as much as 6 percent lower as profit-taking investors sold and the company forecast profit growth of only 15 percent in the next year. in real estate classifieds business REA Group REA.AX fell 3.2 percent, after the company announced a 20 percent rise in profits, but missed market expectations.

Fellow online classifieds player Carsales.com CAR.AX fell as much as 6 percent, after announcing a 6 percent profit rise.

For more individual stocks activity click on STXBZ

New Zealand's benchmark S&P/NZX 50 index .NZ50 was largely flat on Tuesday, edging up 4.37 points or 0.1 percent to 7,352.67.

Things were likely to get more action-packed for the index in the next few weeks as earnings announcements got underway.

"With the financial reporting season just kicking off, I think we will see a fair amount of volatility," said Grant Williamson, director at Hamilton Hindin Greene.

"Investors have pretty high expectations for earnings at the moment so there's the possibility of a bit of room for disappointment in some cases," he added.

Telecommunications infrastructure firm Chorus CNU.NZ was the biggest gainer, rising 1.9 percent, while chicken processor Tegel Group TGH.NZ rose 1.2 percent.

Casino operator Sky City SKC.NZ edged down 0.2 percent ahead of its full-year earnings announcements on Wednesday and as Morning star revised the share downwards to reduce from hold. supply firm PGG Wrightson PGW.NZ fell as much as 3.7 percent, its biggest percentage loss in 11 months, after the company said its full-year 2017 earnings remained challenging. retailer Hallenstein Glassons Holdings HLG.NZ lost 1.1 percent after the company forecast a loss in its full-year profits.

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