Australian shares cut losses; up 1.5 percent for week

19 Dec, 2015

Australian shares gave up early losses to end flat on Friday, led by late buying demand in financials stocks, including Commonwealth Bank of Australia. The S&P/ASX 200 index rose 0.09 percent, or 4.69 points, to 5,106.70 at the close of trade. The benchmark jumped 1.5 percent on Thursday and posted its best weekly performance since the week ending November 20.
New Zealand's benchmark NZX 50 index rose 0.32 percent or 19.51 points to finish the session at 6,107.84. The index has had a tough year, already down more than 6 percent so far and on track for its first negative annual returns since 2011. However, analysts maintained a bullish long-term view of the index on the back of an improving macro-economic outlook and a weak Aussie dollar. The index is expected to rebound in 2016 to 5,625 points, a Reuters poll found.
On Friday, the "Big Four" banks were all in the red, with Westpac and National Australia Bank falling 0.6 percent and 1.7 percent respectively. ANZ Banking slipped 1.2 percent while CBA was off 0.2 percent. Among major miners, BHP Billiton lost 2.6 percent and Rio Tinto skidded 3 percent while Fortescue slumped over 5 percent. Consumer discretionary shares such as Domino's Pizza and salmon grower Tassal Group rose 4.9 percent and 3.2 percent respectively.
New Zealand's gains were led by A2 Milk which hit a record high and rose as much 24.3 percent after the dairy producer raised its forecasts on its 2016 full year earnings. Rubber product manufacturer Skellerup rose 1.38 percent, Goodman Property rose 1.3 percent and infrastructure firm Infratil rose 1.11 percent. New Zealand Refining rose 1.11 percent after signing a an agreement with Vector on upgrading gas production. Vector gained more modestly, rising 0.64 percent. Fuel supplier Z Energy led losses, dropping 3.28 percent after New Zealand's competition regulator further delayed its decision over Z Energy's bid to acquire Chevron New Zealand.

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