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Australia shares rise for 5th day on banks, Woolworth takeover talk

Published 23/11/2015, 01:16 pm
© Reuters.  Australia shares rise for 5th day on banks, Woolworth takeover talk
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* Woolworths up on persistent takeover speculation

* Banks recovering after hefty capital raisings

* Resources weaker on falling commodity prices

SYDNEY/WELLINGTON, Nov 23 (Reuters) - Australian shares rose for a fifth straight session on Monday as investors swooped on high-yielding bank stocks and persistent takeover rumours swirling around Woolworths WOW.AX sent the country's top grocery chain sharply higher.

By 0144 GMT, the S&P/ASX 200 index .AXJO was up 21.9 points or 0.4 percent at 5,278.0 points. The benchmark has risen 5.5 percent since Nov. 16.

Bank stocks have been rallying since August after receiving a battering in early 2015 when an Australian regulator ordered them to increase their cash reserves, prompting a round of capital raisings and asset sales.

"Banks have had a pretty ordinary run post those pretty large capital raisings so it doesn't surprise me that they're recovering, and that yield driver is still there," said Burrell Stockbroking director Richard Herring.

Woolworths, meanwhile, was the subject of a fresh round of media reports saying several private equity firms were considering buying all or part of the supermarket chain, sending shares in the A$30 billion company up nearly 4 percent, its biggest gain in a month.

Commonwealth Bank of Australia CBA.AX led the banks higher, up 0.7 percent, while National Australia Bank NAB.AX rose 0.9 percent, Westpac Banking Corp WBC.AX was up 0.4 percent and Australia and New Zealand Banking Group ANZ.AX added 0.3 percent.

Other retail stocks followed Woolworths higher. Wesfarmers WES.AX , owner of Woolworths rival Coles, gained 1.3 percent. Department store firm Myer MYR.AX firmed 3.4 percent.

Mining stocks fell, however, following declines in commodity prices. BHP Billiton (L:BLT) BHP.AX declined 2.4 percent and rival Rio Tinto (L:RIO) RIO.AX lost 1.2 percent. BHP spin-off South32 S32.AX dropped 5.45 percent.

Energy stocks were mixed despite a weaker oil price. Santos STO.AX fell 3 percent while takeover target Oil Search OSH.AX rose 1.6 percent and Woodside Petroleum WPL.AX was steady.

New Zealand's benchmark NZX 50 index rose 0.8 percent or 46.46 points to 6,055.16.

The biggest gainers were a2 Milk, which added 8.2 percent amid booming export demand from China, and accounting software group Xero, which was trading up 4.8 percent.

The biggest losers included Nuplex, down 2 percent, and New Zealand Refining, which fell 1.3 percent.

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