(Adds analysis, quotes, stocks on the move)
SYDNEY Aug 13 Australian shares rose 0.1
percent on Tuesday, buoyed by a better-than-expected earnings
season so far, with CSL shares underpinning the market with
banks and miners lending some support.
The market has bounced back from a trough of 4,632.3 points
hit on June 25, but worries about slowing growth in China and
uncertainty about the U.S. Federal Reserve's stimulus programme
have seen the index pull back from the 5,100 level reached in
"The reporting season is driving the market at the moment,
rather than overseas leads, and mostly they're exceeding
expectations," said Michael Heffernan, senior client adviser and
economist at broker Lonsec.
Analysts said earnings form major companies have been
relatively close to expectations so far, but the market will
continue to monitor reports from bluechips including
Commonwealth Bank of Australia and Wesfarmers Ltd which are all
due to report later this week, for cues on domestic growth.
Blood products maker CSL Ltd climbed 2.1 percent as
analysts said investors were expecting a strong result and were
positioning themselves ahead of the earnings report due on
The S&P/ASX 200 index rose 6.8 points to 5,115.4 by
0216 GMT, pushing towards near 3-month highs. The benchmark rose
1.1 percent on Monday.
The mining sector also underpinned the market, supported by
Chinese steel futures, which stood at their highest since late
April and on gold prices trading near three-week highs.
BHP Billiton Ltd was trading flat, while Rio Tinto
Ltd rose 0.8 percent. Gold miner Regis Resources Ltd
rallied 4 percent.
Alacer Gold Corp soared 6 percent to A$2.66, a
two-week high, supported by a rise in gold prices, and after the
company announced a leadership change and said the sales process
for its Australian assets is continuing and discussions with a
number of interested parties are well-advanced.
Global manufacturing company Bradken Ltd soared 6.5
percent to A$5.58, a three-month high, after the company
reported a fall on 33.4 percent in earnings with a net profit of
A$66.9 million in the year to June 30, but its outlook for 2014
is upbeat and announced a fully-franked final dividend of
Australian business confidence took a hit last month as
firms reported an intensifying squeeze on profits, a survey
found on Tuesday, with weakness in sectors from finance to
property overshadowing a solid improvement in conditions for
mining and retail.
Financials pared early gains. Top lender the Commonwealth
Bank of Australia rose 0.4 percent while National
Australia Bank edged 0.2 percent higher.
"There's a bit of anticipation about the Commonwealth Bank
of Australia's report tomorrow," Heffernan said.
Stockland Corp Ltd dropped 2.2 percent after
Australia's second-largest property group, reported on Tuesday a
79 percent fall in full-year net profit and said the recovery in
the country's housing market was likely to be modest and uneven.
New Zealand's benchmark NZX 50 index was trading
flat at 4,522.8.
(Reporting by Thuy Ong; Editing by Eric Meijer)