Australia: Shares gain as upbeat output reports offset tech, BHP slump

AUSTRALIAN shares rose on Thursday as a handful of upbeat earnings and production reports offset weak performances in technology stocks and BHP Group after the global miner posted disappointing first-quarter output results. The S&P/ASX 200 index was up 0.2 per cent at 7,586.30 points, as of 0105 GMT. The benchmark closed marginally higher on Wednesday. Logistics firm Brambles rose 7.2 per cent to lead gains in the index after hiking its fiscal 2022 sales, underlying profit outlook, and reiterated its dividend forecast of paying out between 40 per cent and 60 per cent of underlying profit. Aiding the positive sentiment was the energy sub-index, which rose 1.2 per cent even as oil prices fell as investors still remained concerned over economic growth stagnation and supply restrains. Viva Energy’s shares hit a record high after the fuel supplier said its total fuel volumes for the first quarter rose 9 per cent, driven by strong diesel sales. Financials rose 0.9 per cent, with the “Big Four” lenders climbing between 0.6 per cent and 1.1 per cent. Investment manager Challenger rose as much as 7.5 per cent to hit a nine-month high after indicating that its net profit would be towards the upper end of the forecast range of A$430 million (S$435.7 million) to A$480 million. Tech stocks were the biggest laggards, falling 2.63 per cent after tracking a lacklustre Wall Street session overnight. Xero and Nextdc led losses in the index, losing 1.8 per cent and 1.2 per cent, respectively. Australian miners fell 1.1 per cent on softer iron ore prices, and as BHP slumped 2.7 per cent after its iron ore production for the March quarter was lower than expected. The miner also cut its annual copper production view due to bloackades at its Escondida project in Chile. BHP was among the top losers in the mining sub-index while shares of Rio Tinto and Fortescue Metals Group are down 1.2 per cent and 0.3 per cent, respectively. New Zealand’s benchmark S&P/ NZX 50 dipped 0.1 per cent to 11,954.90 points. AFP