Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Australian shares buoyed by resource stocks; NZ inches up

Published 24/10/2019, 12:40 pm
Updated 24/10/2019, 12:42 pm
© Reuters.  Australian shares buoyed by resource stocks; NZ inches up

© Reuters. Australian shares buoyed by resource stocks; NZ inches up

* Metal miners, energy stocks biggest boost to ASX 200

* JB Hi-Fi hits record high on strong July-Sept sales

* NZ's Meridian recovers after biggest drop on Wednesday

By Ambar Warrick

Oct 24 (Reuters) - Australian shares rose on Thursday, underpinned by resource stocks tracking higher commodity prices, as signs of robust oil demand in the United States helped ease some concerns over slowing global growth.

The S&P/ASX 200 index .AXJO was up 0.5% or 36.1 points to 6,709.20 at 0058 GMT. The benchmark was flat on Wednesday.

Mining .AXMM and energy stocks .AXEJ were early Thursday's best performers, with the two sub-indexes rising 0.5% and 1.6%, respectively.

Michael McCarthy, chief market strategist at CMC Markets, said a big draw-down overnight on U.S. oil inventories was "a direct contradiction of the narrative we've seen of slowing growth in the U.S.".

"Australia is a particular beneficiary because of its higher resources exposure," he added.

Oil prices rose about 2.5% on Wednesday following the U.S. inventories data. O/R

Major miners BHP Group BHP.AX and Rio Tinto (LON:RIO) Ltd RIO.AX were up about 0.8% and 0.9%, respectively, tracking strength in copper and iron ore prices.

Iron ore miner Fortescue Metals Group rose 2% after it reported a rise in first-quarter shipments. and gas explorer Santos Ltd STO.AX led gains in energy stocks with a 2.4% advance, while heavyweight Woodside Petroleum WPL.AX moved up 2%.

Electronics retailer JB Hi-Fi Ltd JBH.AX jumped 7.3% to a record high, and was the top gainer on the ASX 200 after posting higher comparable sales growth in July-September. that Australia economic expansion of 2-3% is expected this year, 4.7% growth in JB Hi-Fi sales is seen as an outperformance, McCarthy of CMC Markets said.

Qantas Airways QAN.AX dropped 3.7% and was among the worst performers on the benchmark index after it flagged sluggish domestic growth and a higher annual fuel bill. miner Newcrest Mining Ltd NCM.AX dropped more than 1% after its quarterly output fell. The company also flagged delays at a planned project in Papua New Guinea. Zealand shares rose slightly, with major energy retailers recovering from steep sell-offs on Wednesday when the benchmark tumbled 2.1%, its worst day in more than a year.

The benchmark S&P/NZX 50 index .NZ50 was up 0.1% or 11.75 points to 10,865.54.

Electricity retailer Meridian Energy MEL.NZ , which had a record fall of 8.7% on Wednesday, clawed back about 0.8%. The stock and other major energy generators had plunged after Rio Tinto flagged plans to shut its aluminium smelter, the largest electricity consumer in New Zealand.

Mercury NZ MCY.NZ gained 0.9% and Contact Energy CEN.NZ climbed 0.8%.

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.