You are here

Australia shares hit near 2-year high as oil firms; NZ steady

Monday, April 10, 2017 - 11:32

asx.jpg

[BENGALURU] Australian shares rose to a near two-year high on Monday, bucking regional weakness, as higher oil and metal prices helped offset concerns over growing geopolitical tensions after US missile strikes on Syria.

The S&P/ASX 200 index rose 39.31 points or 0.7 per cent to 5,901.7 by 0304 GMT.

Shares of oil producers rose as crude prices extended gains, supported by strong demand and political uncertainty in Syria.

Top aides to US President Donald Trump differed on Sunday on where US policy on Syria was headed after last week's attack on a Syrian air base, while US Secretary of State Rex Tillerson warned the strikes were a warning to other nations, including North Korea.

sentifi.com

Market voices on:

"Energy and material stocks have got some support from strong commodity prices," said Tony Farnham, economist at Paterson Securities.

"Now the focus would shift to economic indicators such as the Australian business survey numbers" he added.

The benchmark energy index climbed 0.8 per cent to its highest in 19 months, with shares of WorleyParson gaining 3.4 per cent and Oil Search Ltd rising 1.2 per cent.

Higher nickel and aluminium prices supported the material sector. Large cap miner BHP Billiton hit its highest in nearly three weeks, while nickel miner Western Areas Ltd was up 0.4 per cent.

Financials, the biggest index constituent also rose with the 'Big Four' banks gaining between 0.6 per cent and 1.05 per cent.

"We are looking ahead to the reporting season of the Australian banks, three of them at least," said Ric Spooner, chief market strategist at CMC markets.

"People now would be a bit wary of selling the banks too much as we are anticipating that there will be some pretty good results," he added.

New Zealand shares were little changed with the benchmark S&P/NZX 50 index steady at 7,250.17 points at 0218 GMT.

Gains in consumer staples were offset by losses in industrial and real estate stocks.

Honey producer Comvita Ltd CVT NZ was the top performer, rising 2.6 per cent.

REUTERS

Nespresso
Pair your daily business read with the perfect cup of espresso.

Subscribe to The Business Times today to receive your very own Nespresso Inissia coffee machine worth $188.

Find out more at btsub.sg/btdeal

Powered by GET.comGetCom