Australia: Healthcare, mining stocks help shares notch best day in 2 weeks

[BENGALURU] Australian shares rose on Tuesday (Dec 21) by their most in 2 weeks, as biotech firm CSL led healthcare stocks higher and miners advanced on the back of an extended rally in iron ore futures.

The S&P/ASX 200 index settled 0.86 per cent higher at 7,355 to notch its best session since Dec 8, with all sectors except real estate, industrials and education closing in positive territory.

Healthcare stocks rallied 3.9 per cent in their best session since August 2020. Kunal Sawhney, the chief executive officer at equity research firm Kalkine Group, said the gains were primarily fuelled by CSL's recovery.

CSL shares closed 4.9 per cent higher in their second straight session of gains, after shedding 8.8 per cent last week mainly due to a discounted capital raise to fund its acquisition of Vifor Pharma.

Among other gainers, Cochlear and Ramsay Health Care rose 3.9 per cent and 3.1 per cent, respectively.

"The broader optimism was seen to be ruling in favour of the healthcare sector," Sawhney said.

Analysts at Jefferies were also bullish on the sector on expectation that rising Covid-19 cases would contribute to pathology revenues.

Mining stocks gained 1.1 per cent, with Rio Tinto and BHP Group rising 3.2 per cent and 1.5 per cent respectively, as iron ore prices extended their rally and hit multi-week highs on China demand hopes.

Energy stocks firmed 1.6 per cent. Investment house Washington H Soul Pattinson And Co and Ampol rose 3.7 per cent and 2 per cent, respectively.

However, lithium explorer Pilbara Minerals fell 9 per cent to be the top loser on the benchmark after it slashed its annual production forecast due to delays and shutdowns at project sites.

Meanwhile, minutes of the Reserve Bank of Australia's Dec 7 meeting showed its board did not expect the Omicron variant to derail the country's economic recovery. The board also mulled how to wind up its bond buying programme given the rapid economic pickup.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index climbed 0.71 per cent to 12,856.87 despite the country delaying the reopening of its international border to late February.

REUTERS