🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

Australia shares end modestly higher on RBA's dovish tone; NZ up

Published 19/11/2019, 05:10 pm
© Reuters.  Australia shares end modestly higher on RBA's dovish tone; NZ up
AXJO
-
CSL
-
FMG
-
RIO
-
RIO
-
SHL
-
AXGD
-
AXMM
-
AXHJ
-
AXFJ
-
AXIJ
-
RRL
-
NST
-
NZ50
-
ATM
-
CNU
-
WTC
-

* Gold stocks help mining sub-index

* Software giant WiseTech caps benchmark gains

* Sonic Healthcare climbs on strong FY guidance (Updates throughout with closing prices)

By Nikhil Subba

Nov 19 (Reuters) - Australian shares closed modestly higher on Tuesday, after minutes from the country's central bank meeting this month revealed a clear dovish bias, but gains on the benchmark were capped by a decline in technology stocks.

The S&P/ASX 200 index .AXJO advanced 0.7% to 6,814.20 at the close of trade. The main index closed 0.4% lower on Monday.

The Reserve Bank of Australia kept rates steady at its monetary policy meeting on Nov. 5, but the minutes released on Tuesday showed it came nearer to a cut than first thought. The bank left the door wide open to a further move if needed. was a surprise to many in the markets, which had priced in only a minor chance of a November easing. Analysts said the minutes suggested a further rate cut, likely in February but potentially as early as December.

The RBA has cut rates three times this year, to a record low of 0.75% in a bid to revive employment growth, consumer spending and inflation.

Mining stocks .AXMM were best performers on Tuesday, ending the session 0.7% higher at a near two-week high. The sub-index was helped by Rio Tinto (LON:RIO) RIO.AX which advanced almost 1%, and Fortescue Metals Group FMG.AX which climbed 2.7%.

The broader mining index was also boosted by gold-related stocks .AXGD , with gold explorer Regis Resources RRL.AX closing 3.8% higher and peer Northern Star Resources NST.AX finishing 3.2% up. Bullion prices inched up to a more than 1-1/2 week high as as fresh doubts about a trade deal between the United States and China resurfaced.

Healthcare stocks .AXHJ firmed nearly 1% at close, with heavyweight drugmaker CSL Ltd CSL.AX rising 0.8%, after falling in the previous session.

Pathology and radiology service provider Sonic Healthcare Ltd SHL.AX ended the session 2% higher at a near three-month peak, after the Sydney-based co said it expects a FY20 EBITDA growth of 6%-8% from A$1,052 mln ($713.99 mln) in FY19 EBITDA. stocks .AXFJ ended trade marginally higher, with three of the "big four" banks in positive territory.

Bucking the trend, tech stocks .AXIJ fell 1.2%, dragged lower by heavyweight WiseTech Global WTC.AX , whose shares tumbled about 8% after short seller J Capital issued a critical report to coincide with the company's annual general meeting. Wisetech finished as the top loser on the Australian benchmark despite reaffirming its outlook at that meeting.

Meanwhile, New Zealand's benchmark S&P/NZX 50 index .NZ50 rose about 0.2% or 10.08 points to finish the session at 10,892.24.

Dairy company A2 Milk ATM.NZ ended 10.3% higher at a near two-month high, while communications infrastructure services provider Chorus Lts CNU.NZ firmed about 7% to close at a near three-month peak.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.