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Australia shares rise as CSL surges, materials gain; NZ flat

Published 19/01/2017, 01:00 pm
© Reuters.  Australia shares rise as CSL surges, materials gain; NZ flat
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Jan 19 (Reuters) - CSL Ltd CSL.AX drove gains in the Australian benchmark on Thursday, surging after it upgraded its annual profit guidance, while materials and financials also added to the uptrend.

The S&P/ASX 200 index .AXJO rose 0.2 percent, or 9.946 points, to 5,688.7 by 0154 GMT. The benchmark fell 0.4 percent in the previous session.

"I think CSL's upgrade is the main driver today, combined with some support from resources stocks," said Bill Keenan, general manager of direct equities research at Lonsec.

CSL Ltd, a global biotech company, jumped by up to 10.8 percent to its highest in more than four months, and recording its biggest intraday gain in close to 10 years. The company raised its FY17 NPAT forecast in a range of about 18 percent to 20 percent at constant currency, from 11 percent earlier. stocks .AXHJ rose as much as 5.4 percent to their highest in close to three months, while recording the biggest percentage gain since December 2008.

Local miners .AXMM rose significantly despite an overnight drop in Chinese iron ore futures, although they were supported by steadying copper prices. IRONORE/ MET/L

"I don't think gains in basic material stocks today is commodity related. It is probably portfolio rebalancing into resources," Keenan said. "I think they (investors) are just positioning themselves ahead of the earnings season."

BHP Billiton (LON:BLT) Ltd BHP.AX and Rio Tinto (LON:RIO) Ltd RIO.AX rose as much as 1.3 percent and 1.8 percent respectively, while Fortescue Metals Group Ltd FMG.AX rose by up to 2.8 percent.

The overnight dip in oil prices dragged energy stocks .AXEJ down as much as 0.6 percent. Gold stocks .AXGD fell 2.4 percent to record its biggest intraday drop in more than two weeks as gold prices fell on a strengthening dollar. O/R GOL/

Bega Cheese Ltd BGA.AX was the top performer on the main index rising up to 13.6 percent after announcing the purchase of most of Mondelez International's MDLZ.O Australia and New Zealand grocery and cheese business for A$460 million ($345.05 million). Zealand's benchmark S&P/NZX 50 index .NZ50 was flat at 7,056.29 at 0154 GMT, with gains in utilities and healthcare offset by declines in industrials and consumer discretionary stocks.

Meridian Energy Ltd MEL.NZ was the top gainer on the index while casino operator Skycity Entertainment Group Ltd SKC.NZ weighed on the index most.

($1 = 1.3332 Australian dollars)

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