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Australia: Shares hit 19-month high led by miners, financials

Tuesday, January 3, 2017 - 16:06

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[SYDNEY] Australian shares closed at a 19-month high in thin trade on Tuesday boosted by financials and miners, which gained on rising base metal prices.

The S&P/ASX 200 index rose 1.2 per cent, or 67.409 points, to 5,733.2, the highest close since June 1, 2015. Trading volumes were 0.6 times the 30-day average.

The index closed 2016 up 7 per cent, the best annual performance since 2013, as gains in most commodity prices drove up shares in mining firms.

On Tuesday, materials ended at their highest close since March 2, 2015, lifted by mining heavyweights as copper gained on expectations of strong demand from China and the United States.

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BHP Billiton Ltd rose 1.6 per cent while its spin-off South32 Ltd jumped 4 per cent.

Fortescue Metals Group Ltd added 1.2 per cent after Chinese steel prices edged up on expectations of lower output from China.

Financials gained 1.2 per cent to end at their highest in nearly 17 months, with the "Big Four" banks leading the rally on the main index.

Australia and New Zealand Banking Group, Australia's third-largest bank by market cap, rose 1.7 per cent and was the biggest contributor to the benchmark's gains.

The bank said it would sell its stake in Shanghai Rural Commercial Bank Co Ltd to China COSCO Shipping and Shanghai Sino-Poland Enterprise Management Development for US$1.3 billion.

Energy stocks added 0.9 per cent as oil prices rose on hopes OPEC and non-OPEC production cuts would ease the global supply glut.

Gold miners shed 0.1 per cent despite gains in gold prices in the face of a strong dollar.

New Zealand's share market was closed for a public holiday and will reopen on Wednesday.

REUTERS

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