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Australian shares tick up on materials, oil; NZ flat

Published 22/11/2017, 01:00 pm
Updated 22/11/2017, 01:10 pm
© Reuters.  Australian shares tick up on materials, oil; NZ flat

By Aditya Soni

Nov 22 (Reuters) - Australian shares ticked up on Wednesday, with rising prices for oil and metals supporting the energy and materials indexes.

The S&P/ASX 200 index .AXJO climbed 0.5 percent or 27.98 points to 5,991.50 by 0153 GMT. The benchmark rose 0.3 percent on Tuesday.

Nine of the exchange's 10 sectors traded positively.

The Australian metals and mining index .AXMM rose 1.2 percent, with heavyweight BHP BHP.AX driving the gains on the benchmark, while its rival Rio Tinto (LON:RIO) RIO.AX rose 1.2 percent.

"The oil prices definitely are giving a better outlook for BHP compared to Rio. So, in that context, BHP is the dominant player as far as resources are concerned", said Mathan Somasundaram, market portfolio strategist at Blue Ocean Equities.

Oil edged up on Tuesday, supported by expectations that OPEC and other producing countries next week would extend output cuts. O/R

The energy sector .AXEJ was the best performer on the benchmark, with Origin Energy Ltd ORG.AX rising 2.1 percent and Woodside Petroleum WPL.AX gaining 0.8 percent.

Chinese rebar steel futures rose nearly 3 percent on Tuesday, registering a second straight day of gains on tighter supply. IRONORE/

Somasundaram said positive commodities trade overnight along with the weak U.S. dollar supported the Australian dollar and the materials sector.

Wall Street also provided a strong lead as U.S. stocks jumped on Tuesday, pushing all three major indexes to record closing highs. .N

"That was a pretty solid run and despite the risk in the German economy with the election cycle. The market seems to have a canny ability to ignore risk at this point," Somasundaram added.

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Among other blue chips, blood products producer CSL Ltd CSL.AX rose 1.5 percent to a near two week high, on track for fourth consecutive session of gains.

But National Bank of Australia NAB.AX dipped 0.4 percent, while Westpac Banking Corp WBC.AX fell nearly half a percent.

Australia's top central banker said on Tuesday there was "not a strong case" for a near-term interest rate rise as inflation was expected to undershoot its target for another two years, suggesting that a rate hike is not on the cards for some time. the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.1 percent or 9.07 points to 8,097.55.

A2 Milk Company Ltd ATM.NZ led the gains as it rose 5 percent to its highest in more than three weeks.

Medical device manufacturer Fisher & Paykel Healthcare Corporation Ltd FPH.NZ was the biggest drag on the index for a second straight day, slumping 4.2 percent.

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