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Australia shares lifted as industrials rally, NZ subdued

Published 22/02/2016, 02:07 pm
© Reuters.  Australia shares lifted as industrials rally, NZ subdued
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By Cecile Lefort and Charlotte Greenfield

SYDNEY/WELLINGTON, Feb 22 (Reuters) - Australian shares climbed to a three-week peak on Monday, lifted by improving risk appetite and upbeat earnings at home, while New Zealand stocks took a breather after last week's 3.5 percent rally.

The S&P/ASX 200 index .AXJO powered up 0.6 percent or 29.804 points to 4,983.2 by 02:49 GMT. The benchmark rallied nearly 4 percent last week, having erased the previous week's losses. Still, the index is 2.1 percent down this year, having been rocked by worries about global growth and tumbling oil prices.

Gains were across the board with industrial stocks the star performers. Logistics provider Brambles BXB.AX surged 9 percent to touch its highest in nine years after reporting a net profit gain of nearly A$300 million. share price of Bluescope Steel BSL.AX , Australia's biggest steelmaker, scaled its highest in more than a year after first-half net profit doubled. also gained after a rise in metal prices and iron ore, Australia's top export earner.

Fortescue Metals Group FMG.AX jumped 8 percent to a three-month peak, while Rio Tinto (L:RIO) RIO.AX and BHP Billiton (L:BLT) gained between 2 and 3 percent.

The better mood spread to financials which have suffered from a general risk aversion in recent weeks.

Macquarie Group MQA.AX led the pack with a jump of 1.5 percent, while Commonwealth Bank of Australia CBA.AX , National Australia Bank NAB.AX and Westpac WBC.AX rose around 0.5 percent.

Strong earnings lifted health insurer NIB Holdings NHF.AX 7.3 percent on an encouraging outlook. the market gave some energy stocks a wide berth on concerns about a general oversupply of oil.

Santos STO.AX and Woodside Petroleum WPL.AX dropped around 1.5 percent each.

For more individual stocks activity click on STXBZ

New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.28 percent or 17.18 points to 6,124.53 as the index stabilised after five consecutive sessions of gains the previous week.

Freightways FRE.NZ led losses, falling 3.2 percent, after the delivery company said in its half-year earnings results that it was cautious in its outlook given global market volatility. Airport AIA.NZ lost 1.42 percent as investors took profits after the company's shares rose as much as 3.9 percent and hit an all-time high on Friday. The company had reported half-year net profit rising 25 percent on a tourism boom. software company Orion Health Group OHE.NZ edged down 0.73 percent while Nuplex Industries NPX.NZ lost 0.79 percent.

Steel products supplier Steel & Tube Holdings STU.NZ was the biggest gainer, rising 2.7 percent after the company posted a half-yearly jump in net profit after tax of 47 percent on Friday.

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