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Australia stocks firm; Suncorp up on debt repurchase
Tuesday June 30, 05:55 PM
(Adds Suncorp)
SYDNEY, June 30 (Reuters) - Australian shares rose to two-week highs on Tuesday, led by mining heavyweights BHP Billiton and Rio Tinto as talk of strong demand for Rio's $15.2 billion rights issue buoyed demand for resource stocks.
The benchmark S&P/ASX 200 .AXJO was up 53.6 points at 3,940.5 points by 0549 GMT. New Zealand's benchmark NZX 50 index .NZ50 rose 0.8 percent, or 21 points, to 2,796.1.
STOCKS ON THE MOVE
* Suncorp-Metway (ASX: SUN.ax) , Australia's second-biggest car and home insurer, jumped 4.2 percent to A$6.70 after it said it has accepted offers to repurchase A$405 million ($328.5 million) of its subordinated debt.
0548 GMT
* Oil and gas stocks were up, lifted by higher oil prices which rose to a near eight-month high on Tuesday, fuelled by more unrest in Nigeria and optimism on global recovery prospects.
Australia's top oil refiner Caltex Australia (ASX: CTX.ax) climbed 5.5 percent to A$13.73, while oil and gas firm Santos (ASX: STO.ax) rose 1.5 percent to A$14.61.
0219 GMT
* Global miners Rio Tinto (ASX: RIO.ax) and BHP Billiton (ASX: BHP.ax) were up as talk of strong demand for Rio's $15.2 billion rights issue buoyed sentiment for resource stocks.
Speculation swirled on Tuesday that China's state-owned Chinalco, which launched a failed bid to raise its stake in Rio earlier this year, is set to take up its full entitlement to new shares in Rio's $15.2 billion rights issue. [ID:nSYD508826]
Rio (ASX: RIO.ax) was up 3.5 percent at A$52.02, while BHP (ASX: BHP.ax) rose 2.0 percent to A$34.59.
Analysts said Tuesday's deadline for key price talks over iron ore contracts between the miners and their China customers was supporting Rio and BHP as well.
They said miners are likely to benefit if Tuesday's deadline is not met because it means China's steel mills would have to buy iron ore in the spot market, where prices are likely to be higher than any would-be contract price.
0211 GMT
* Department store retailer David Jones Ltd (ASX: DJS.ax) jumped 10.6 percent to a near 17-month high of A$4.59 after it raised its full-year profit forecast on a strong trading performance in May and June. [ID:SYD509690]
0113 GMT
* David Jones' profit upgrade lifted demand for other retail stocks. Electricals and furniture retailer Harvey Norman (ASX: HVN.ax) jumped 8.9 percent to A$3.31. Electrical goods retailer JB Hi Fi (ASX: JBH.ax) rose 1.7 percent to A$15.32.
0113 GMT
* Miner PanAust Ltd (ASX: PNA.ax) jumped 4.4 percent to A$0.355 after it said it had resumed normal operations at its copper-gold mine in Laos.
0042 GMT
* Telecom Corp of New Zealand Ltd (NZX: TEL.nz) fell 1.5 percent to NZ$2.70 after the competition watchdog said it planned to recommend price controls on making calls to mobile phones, and would also look at whether controls should be imposed on calls between competing mobile networks. [WLF001377]
0134 GMT
* New Zealand children's clothing retailer Pumpkin Patch Ltd (NZX: PPL.nz) gained 7.4 percent to NZ$1.45. It said it would shut 20 out of its 35 shops in the United States because of tough conditions, but added that debt levels were at the low end of expectations, stocks levels under control, and trading in other parts of the group robust. See [WLF001376] ($1=A$1.25) (Reporting by Koh Gui Qing)
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