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Australia shares end higher on last minute buying; NZ down

Published 10/01/2019, 05:27 pm
Updated 10/01/2019, 05:30 pm
© Reuters.  Australia shares end higher on last minute buying; NZ down

© Reuters. Australia shares end higher on last minute buying; NZ down

* Financials and materials drive index higher

* Continued buying may push ASX above resistance level- Analyst (Updates to close)

By Rashmi Ashok

Jan 10 (Reuters) - Australian shares ended higher on Thursday after trading in a tight range for most of the session, as a burst of late buying after the bell propped up large cap stocks, boosting the index.

The S&P/ASX 200 index .AXJO was little changed in late trade but rose 0.3 percent or 17 points to 5,795.30 at the close of trade. The benchmark had gained nearly 1 percent on Wednesday.

"There was some buying in the post market option, mainly the large cap stocks leading the drive... materials and financials spaces added about 0.3 percent," said Kyle Rodda, market analyst at IG Markets. "In the post-market option you get some very large institutional players looking to get some exposure to the ASX... and the market was at a level that they saw as attractive."

The financial sub-index .AXFJ which accounts for a big number of the large cap stocks rose 0.2 percent. Australia and New Zealand Banking Group Ltd ANZ.AX rose 0.6 percent while Westpac Banking Corp WBC.AX and Commonwealth Bank of Australia CBA.AX also ticked up.

The metals and mining index .AXMM jumped 0.8 percent, with Rio Tinto (LON:RIO) Ltd RIO.AX edging higher while Newcrest Mining NCM.AX added 1.8 percent.

Meanwhile, the world's biggest listed miner BHP Group BHP.AX which had slumped as much as 5 percent in early trade to weigh on the index, recovered slightly to close 3.4 percent lower.

Rodda also added that sustained buying by large investors may help push the index past the critical 5,800 resistance level in the coming sessions.

Gold stocks .AXGD surged 2.4 percent boosted by a jump in gold prices, with Saracen Mineral Holdings SAR.AX rising 2 percent and AngloGold Ashanti Ltd AGG.AX among top gainers, up 5.6 percent.

Growing expectations that the U.S. Federal Reserve will pause its rate tightening cycle this year weighed on the dollar, boosting the attraction of gold as a safe-haven investment. GOL/

Energy stocks .AXEJ continued their rally, up about 0.7 percent with Woodside Petroleum Ltd WPL.AX up 0.6 percent and Oil Search Ltd OSH.AX firming 1.5 percent.

Healthcare stocks .AXHJ also rose, boosted by gains in stocks of CSL Ltd CSL.AX and Cochlear Ltd COH.AX .

However, investors were cautious as they awaited more detail on the outcome of talks in Beijing between U.S. and Chinese officials aimed at de-escalating a damaging trade war. by that caution, New Zealand's benchmark S&P/NZX 50 index .NZ50 closed 0.3 percent, or 28.06 points, lower at 8,919.16.

Benchmark heavyweight a2 Milk Company Ltd ATM.NZ fell 1.1 percent while outdoor equipment retailer Kathmandu Holdings Ltd KMD.NZ lost 1.3 percent.

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