Australia shares edge higher on Santos' record quarterly production

Australian shares closed slightly higher on Thursday, propped up by the energy sector, after industry heavyweight Santos Ltd's better-than-expected quarterly production report, even as investors were poised between the bulls and the bears.

The S&P/ASX 200 index edged 0.3pc higher to 6,094.50 at the close of trade, following a 1.3pc gain on Wednesday.

Santos, the country's second-largest independent gas producer, finished 3.5pc higher, its highest close since June 10, after it reported a record 18.6pc rise in quarterly production.

This helped the energy sector rise 1.2pc to close at its highest since July 6.

Meanwhile, Treasurer Josh Frydenberg said on Thursday the national budget was set to plunge into its biggest deficit since World War Two this year, as the coronavirus crisis knocks Australia into its first recession in three decades.

"The government budget update today was pretty much in line with what most economists were talking about. So although it's a big number, it's kind of been a non-factor," said Henry Jennings, senior analyst at Marcus Today Financial.

"It's a bit two steps forward, one step back at the moment as we head in towards reporting season, which of course will be the big test for some of the valuations."

Financial stocks rose 0.18pc led by QBE Insurance Group Ltd, up 4.07pc, followed by Perpetual Ltd gaining 3.69pc.

Among the Big Four banks, Westpac Banking Corp and National Australia Bank Ltd finished higher, while the other two closed in the red.

Technology stocks fell 0.47pc led by Nearmap Ltd, down 3.61pc, followed by TechnologyOne Ltd losing 2.31pc.

ASX 300 metals and mining index fell 0.11pc led by Bellevue Gold Ltd, down 3.64pc, followed by Ramelius Resources Ltd losing 2.43pc.

In New Zealand, the benchmark S&P/NZX 50 index fell 0.25pc to 11,693.4.

Top losers on the are Oceania Healthcare Ltd , down 3.88pc, followed by Tourism Holdings Ltd losing 3.33pc.