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Reuters New Zealand
Australia shares flat; banks, miners weak
Wednesday October 28, 02:00 PM
(Adds comments, stocks on the move)
WELLINGTON, Oct 28 (Reuters) - Australian stocks were flat on Wednesday, as strength in defensive stocks balanced out weakness in financials such as National Australia Bank (ASX: NAB.ax) and in miners.
Shares in NAB, Australia's top lender, reversed early gains to trade down 1.1 percent at A$30.33 after the company reported a second half profit in line with expectations and said it would take a conservative approach to capital management. [ID:nSYD510266]
"NAB's result was a bit stronger than expected but given the recent rises we've seen amongst the big four banks there's probably some profit-taking going on there," IG Markets research analyst Ben Potter said.
Investors were likely concerned that the rally of the last few months had probably reached its peak, and the market was in consolidation mode, Potter said.
"We're starting to see a rotation towards more defensive sectors at the moment, there's a bit of heat coming out of the cyclical sectors such as materials and financials," Potter said.
The benchmark S&P/ASX 200 index .AXJO rose 4.8 points to 4,758.3 at 0000 GMT, after falling 1.6 percent on Tuesday.
New Zealand's benchmark NZX 50 index .NZ50 gained 0.5 percent to 3,207.1.
Mining heavyweights BHP Billiton (ASX: BHP.ax) and Rio Tinto (ASX: RIO.ax) both fell on lower metal prices, with BHP down 0.6 percent to A$38.62 and Rio down 0.5 percent to A$64.69.
STOCKS ON THE MOVE
* Defensive stocks such as healthcare and staples gained, with Sonic Healthcare (ASX: SHL.ax) up 2.6 percent to A$14.09 and packaging group Amcor (ASX: AMC.ax) up 2.3 percent to A$5.74.
0050 GMT
* Phone provider Telstra Corp (ASX: TLS.ax) rose 1.5 percent to A$3.29 after the company said it would not do a deal with the government that undervalued its fixed line assets. [ID:nSYD540420]
0000 GMT
* Shares in building materials firm Boral (ASX: BLD.ax) fell 1.3 percent to A$6.02 after the company said trading conditions remained difficult [ID:nSYU008952]
2325 GMT (Reporting by Adrian Bathgate)
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