June's AI-picked stock updates now live. See what's new in Tech Titans, up 28.5% year to date.Unlock Stocks

Australian shares rise on record Qantas outlook, stronger banks; NZ up

Published 02/05/2018, 01:29 pm
Updated 02/05/2018, 01:30 pm
© Reuters.  Australian shares rise on record Qantas outlook, stronger banks; NZ up
AUD/USD
-
AXJO
-
CBA
-
ANZ
-
RIO
-
JBH
-
MIN
-
RIO
-
TCL
-
WOW
-
HG
-
AXNJ
-
AXFJ
-
SYD
-
S32
-
QAN
-

* Aussie shares rise to more than 2-mth high

* Qantas surges supporting industrials

* Woolworths highest since August 2015 on strong Q3 sales growth

* NZ rises on a2 Milk

By Aditya Soni

May 2 (Reuters) - Australian shares rose on Wednesday, led by gains in financials, with industrials surging after Qantas Airways QAN.AX forecast record annual profits.

The S&P/ASX 200 index .AXJO rose 0.6 percent or 35.70 points to 6,050.9 by 0320 GMT. The benchmark rose 0.5 percent on Tuesday.

Qantas forecast underlying profit before tax in a range of A$1.55 billion to A$1.60 billion ($1.16 billion-$1.20 billion) for the fiscal year ended June 30, compared with A$1.4 billion profit a year earlier. Qantas's third quarter revenue rose 7.5 percent. Australia's largest airline, rose 6.2 percent to a near six-month high and was among the most dominant gainers on the benchmark.

The last 12 months have been "tremendous" for Qantas, with the rise in its share price driving a spike in local industrials, said James McGlew, executive director for corporate stockbroking at Perth-based Argonaut.

The Australian industrials index .AXNJ rose 1.4 percent, with toll road operator Transurban Group TCL.AX rising 0.6 percent to a more than seven-week high, while Sydney Airport Holdings SYD.AX climbed 0.8 percent.

Banks continued to build on their strong start to the week, with the Australian financial index .AXFJ climbing 0.6 percent to an almost six-week high. The index has gained about 2.5 percent since Friday's close.

McGlew said that positive news on the major banks has returned positive buying momentum to the sector.

Australia and New Zealand Banking Group Ltd ANZ.AX on Tuesday reported a 4 percent rise in its half-year cash earnings from continuing operations.

An extra A$1 billion ($753 million) capital requirement slugged on Commonwealth Bank of Australia CBA.AX by the country's banking regulator on Tuesday wasn't as bad as investors had expected. The lender traded 0.4 percent higher on Wednesday.

Grocery giant Woolworths Group Ltd WOW.AX also gained, rising 1.1 percent to a near three-year high.

Woolworths' third-quarter sales rose 4.3 percent, helped by strong domestic food sales even as fruit and vegetable deflation persisted. services provider Mineral Resources Ltd MIN.AX surged 4.3 percent to its highest in more than two months.

The company said on Tuesday it was looking to sell a minority stake in its Wodgina Lithium mine in the west of Australia. wider materials sector also traded higher, underpinned by a rise in copper prices.

Global miner Rio Tinto (LON:RIO) Ltd RIO.AX strengthened 0.9 percent, while South32 Ltd S32.AX jumped 1.8 percent.

But electronics retailer JB Hi-Fi Ltd JBH.AX dipped as much as 9.8 percent to its lowest in more than five months after cutting its full-year profit forecast, citing a weak performance from The Good Guys, its home appliances business. New Zealand, the benchmark S&P/NZX 50 index .NZ50 rose 0.7 percent or 55.55 points to 8,491.11.

Consumer staples accounted for nearly half of the gains, with a2 Milk Company Ltd ATM.NZ climbing about 2.6 percent to its highest since April 24.

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.