Australian shares rise tracking commodities; ANZ jumps to record on cost-cut plan

Australian shares advanced on Monday, lifted by gains in commodity stocks on stronger resource prices, while lender ANZ hit a record high after unveiling cost-cutting measures.

The S&P/ASX 200 ended 0.8% higher at 8,835.90, posting its strongest session in nearly a month.

On Friday, the index had closed at its lowest since September 24.

Gold stocks, which have soared over 90% this year to a series of record highs, climbed 3.7% on the day as prices of the precious metal strengthened.

Gold rallied after a raft of weak US economic data stoked concerns over a global slowdown.

Subindex heavyweight Northern Star Resources rose 3.5%, while smaller peer Dateline Resources was the top performer with a 16% jump.

Energy stocks added 1.5% to log a near two-month high, buoyed by firm oil prices, with oil giants Woodside and Santos up 1.2% and 0.8%, respectively.

Bank boost

Banks rose 0.6%, lifted by ANZ, which closed at a record high after unveiling cost-cutting plans despite reporting a 14% decline in annual cash earnings.

The lender had lost as much as 2.3% earlier in the day. Brokerage Citi said in a note that ANZ’s capital was slightly better than anticipated, adding that its asset quality remains resilient and costs better than expected.

Banks, previously sidelined due to lofty valuations and sector underperformance, drew investors back after the Reserve Bank of Australia signalled a cautious policy stance last week.

Among the ‘Big Four’ banks, Westpac rose 1.4%, while Commonwealth Bank of Australia and National Australia Bank lost 0.6% and 0.4% each.

Elsewhere, mining stocks climbed 1.6% while technology stocks added 2.4%.

New Zealand’s benchmark S&P/NZX 50 index closed up 0.1% at 13,617.48 points.