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Australia shares edge up, AMP jumps on plan to trim business risk; NZ also rise

Published 09/02/2017, 04:47 pm
Updated 09/02/2017, 04:50 pm
© Reuters.  Australia shares edge up, AMP jumps on plan to trim business risk; NZ also rise
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Feb 9 (Reuters) - Australian stocks ended slightly up on Thursday, supported by shares in the country's biggest wealth manager, AMP Ltd AMP.AX , rising sharply on its plans to trim exposure to its troubled life insurance business.

The S&P/ASX 200 index .AXJO tacked on 0.2 percent, or 13.23 points, to 5,664.6 at the close of trade. The benchmark climbed 0.5 percent on Wednesday.

Real estate companies GPT Group GPT.AX and Westfield Corp WFD.AX rose 3 percent and 2.5 percent respectively.

The stocks appeared to take their lead from industry data showing the housing market remained sturdy despite a slowdown in price gains. Ltd AMP.AX advanced 4 percent after it said it wanted to strike a second reinsurance deal for its life insurance unit to reduce its financial exposure to the troubled business. Suncorp Group Ltd SUN.AX closed nearly 1 percent higher after it said it will consider the sale of its A$2 billion ($1.52 billion) life insurance division. the other big gainers was AGL Energy AGL.AX , which ended 4.4 percent higher on news it expected electricity prices to climb further, offsetting pain in its gas business. Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.8 percent or 55.36 points to finish the session at 7,121.63, helped by expectations central bank policy will remain stimulatory for a few more years to come.

The country's central bank held the official cash rate steady at 1.75 percent, and flagged it could remain there for two years or more. operator SkyCity Entertainment SKC.NZ jumped as much as 7 percent, recording its biggest intraday percentage gain in more than a year, on strong growth in Auckland business during the second quarter. ($1 = 1.3116 Australian dollars)

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