SYDNEY, Nov 4: Australian shares edged slightly higher today helped by better-than-expected retail sales and house price figures after a stronger close on Wall Street, though selling in major lender Westpac limited gains.
Westpac Banking Corp fell 0.2 percent after reporting an 8 percent rise in full-year cash earnings and a 30 percent fall in bad debts. Investors worried the country’s second-biggest bank by market value is losing out in a price war over residential mortgages.
Among the ‘Big Four’ banks, Commonwealth Bank of Australia rose 0.6 percent and Australia and New Zealand Banking Group added 0.1 percent.
The S&P/ASX 200 index rose 7.4 points to 5,418.8 by 0056 GMT, hovering at four-year highs. The benchmark slipped 0.3 percent on Friday, but ended the month 4 percent higher.
‘We are bullish going into next year, but it wouldn’t surprise to see some sort of breather … We think any pullback is going to be very shallow,’ said Martin Lakos, division director at Macquarie Bank.
U.S. Stocks rose on Friday after surprisingly strong manufacturing data overshadowed expectations that the Federal Reserve might reduce stimulus earlier than expected.
Retailers David Jones Ltd jumped 4.1 percent to six-week highs, while rival Myer Holdings Ltd climbed 2 percent after better-than-expected retail sales numbers . Electronics and entertainment retailer JB Hi Fi Ltd rallied 1.7 percent.
‘There’s absolutely no doubt that the Reserve Bank is hanging out to see consumers get some traction with this slow interest rate environment,’ said Lakos, ahead of a central bank policy meeting on Tuesday.
Among construction companies, Leighton Holdings Ltd firmed 1.2 percent as house prices rose 1.9 percent in the third quarter.
Capping broader gains, defensives traded lower, with top telecommunications company Telstra Corporation Ltd slipping 0.1 percent while consumer retail staple Woolworths Ltd lost 0.6 percent.
Embattled surfwear company Billabong International Ltd recovered earlier losses to climb 1.3 percent after announcing plans to sell its Canadian retail chain West 49 for C$9 million to C$11 million ($8.62 million to $10.53 million) to fashion retailer YM Inc.
Shares in Whitehaven Coal Ltd lost 2.2 percent to A$1.57 after its chairman said the company was not looking to raise funds, as delays on a major growth project and weak coal prices increased pressure the firm to raise equity.
Coca-Cola Amatil Ltd plumbed 4.3 percent after the beverage company announced it expected lower annual earnings.
New Zealand’s benchmark NZX 50 index slipped 0.1 percent to 4,907.7.
($1 = 1.0444 Canadian dollars)
(agencies)
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