Australia shares end 1% firmer on NAB, gold stocks; NZ gains
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[BENGALURU] Australian shares ended higher on Thursday, as gains in gold stocks and a jump in the country's third-largest lender National Australia Bank offset losses among energy stocks.
The S&P/ASX 200 index rose 1 per cent or 66.4 points to 6,726.60 at the close of trade. The benchmark fell 0.6 per cent on Wednesday.
National Australia Bank ended 2.2 per cent higher at a one-week high and was among top boosts to the ASX 200, even after posting a 10.6 per cent drop in annual cash earnings and cutting final dividend.
"It is purely relief that they didn't do a capital raise or cut their franking... the dividend cut was already priced in anyway. The yield is still quite compelling in an environment where you have record low interest rates," Henry Jennings, senior analyst and portfolio manager at Marcustoday Financial Newsletter, said.
Offering relief, the lender announced a dividend reinvestment plan which will boost its capital levels by raising about A$1.55 billion (S$1.45 billion), in a bid to adhere to stricter capital positions required by regulators.
The financial index rose 1.1 per cent, with top lender Commonwealth Bank of Australia adding 1.3 per cent, and No 2 lender Westpac Banking Corp rising 0.7 per cent.
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While not a part of the ASX 200, buy now, pay later (BNPL) company Zip Co Ltd closed 16.9 per cent higher after it signed a deal with Amazon Inc under which its BNPL service would be offered on the world's biggest retailer's platform.
Gold miners rebounded from a sharp fall in the previous session to advance 1.5 per cent. Newcrest Mining Ltd added 2.1 per cent while Northern Star Resources Ltd gained 1.3 per cent.
Technology stocks also clocked firm gains, driven by shares of software maker Xero Ltd.
The stock rose 9.6 per cent after posting a first-half net profit against a loss last year, recording strong subscriber growth and a robust outlook on fiscal 2020 cash flow.
Meanwhile, energy stocks fell amid a drop in oil prices. Beach Energy Ltd lost 2.1 per cent while Santos Ltd fell 1.5 per cent. Oil Search Ltd lost 1.1 per cent while heavyweight Woodside Petroleum traded marginally lower.
New Zealand's benchmark S&P/NZX 50 index rose 0.3 per cent or 35.88 points to finish the session at 10,795.06.
Gains of 2.2 per cent by dairy giant a2 Milk Company Ltd and 1.56 per cent by market operator NZX Ltd supported the index.
REUTERS
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