You are here

Australia, NZ: Shares rise, partly recouping Brexit falls


[SYDNEY] Australian and New Zealand shares rallied for a second straight session on Thursday, with both bourses gaining more than one per cent in morning trade as global markets begin to recover from Brexit shocks.

The S&P/ASX 200 index rose 70 points to 5,212.4 by 0144 GMT. The benchmark added 1.36 per cent on Thursday and has this week recouped more than half of its cumulative 5.2 per cent fall in the sessions that followed the United Kingdom's vote to leave the European Union.

"The market is back in positive territory today as it looks to retrace some of the losses from the shock of the Brexit referendum," said senior analyst Adam Tout at CPS Capital in Perth.

"It's following the pattern led from New York markets, retracing recent losses. We're going to be seeing some better looking valuations for 30 June."

Financials, miners and healthcare stocks led Australia's market higher, although all sectors rose.

Mayne Pharma Group stock surged 36.69 per cent as it emerged from a trading halt on Thursday, after announcing on Tuesday that it will acquire a portfolio of generic drugs from Teva Pharmaceuticals for US$652 million.

"A lot of healthcare stocks are having a good day today, but that's a transaction the markets have rewarded," Mr Tout said.

Banking shares rose for a second straight session, with National Australia Bank Ltd, which added 2.38 per cent and Australia and New Zealand Banking Group Ltd which added 2.2 per cent, the biggest gainers.

New Zealand's benchmark S&P/NZX 50 index rallied 1.13 per cent or 76.980 points on Thursday to 6,881.19 as equity markets continued to recover from Britain's vote to quit the EU.

Outdoor equipment retailer Kathmandu led gains, rising 17.29 per cent after the company upwardly revised its forecast profits for its full-year 2016 earnings.

Air New Zealand rose 2.44 per cent and Tower Insurance was up 2.24 per cent.

Health stocks had strong gains with retirement village operator Ryman Healthcare up 2.3 per cent and health software company Orion Health Group rising 1.87 per cent.