Markets

Australia shares off early highs; Suncorp jumps

MELBOURNE : Australian shares retreated from early highs to be up 0.4 percent on Wednesday, supported by banks, miners a

Published August 24, 2011 Updated August 24, 2011 04:38am

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By Shoaib Ur Rehman

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But gold producers weakened after bullion prices backed off from all-time record highs of around $1,900 an ounce.

Many investors awaited results due later in the day from global miner BHP Billiton , which is expected to report a record annual profit of $22 billion. BHP stock was up 0.2 percent in mid-morning trade.

Markets are also positioning for the possibility that US Federal Reserve Chairman Ben Bernanke may signal further economic stimulus measures on Friday, when he is due to give a speech at a central bankers' conference in Wyoming.

A year ago at the same event he signalled a $600 billion Treasuries purchase program.

"Nobody will know until the weekend (Australian time) but the market has been down for so long that if there is a chance, they will be betting for the good rather than for the bad," said Albert Hung, chief investment officer at Alleron Investment Management.

"The market may have already discounted the worst scenario," he added.

Australia's S&P/ASX 200 index was up 17.4 points at 4,191.9 by 0153 GMT. The benchmark rose 2.2 percent on Tuesday.

New Zealand's benchmark NZX 50 index rose 0.9 percent to 3,299.6.

Seven West Media surged 20 percent to A$3.17 after it reported a 23 percent rise in annual television profits and said it was reviewing costs. The stock had been battered as low as A$2.52 on Monday, from highs above $5 early in the year.

"They were way down. It's rebounding on confirmation of no significant deterioration yet," said Hung.

Gold miner St Barbara fell 3 percent to A$1.93 as producers of the precious metal backed down after gold recoiled from its first rise above $1,900 an ounce. Newcrest Mining shed 1.5 percent.

Pacific Brands scored an 11 percent rise to A$0.695 after it announced on-market share buy-back of up to 93,138,624 shares. The retailer's underlying sales were flat in the second half in a tough retail market and earnings were expected to fall in 2012.

Worley Parsons jumped 7.4 percent to A$25.46 after its net profit rose 25 percent in 2011 after a strong second half and it flagged "good growth" in 2012 underlying earnings.

Insurer and bank Suncorp rallied 5.6 percent after its annual profit beat forecasts and it hinted at capital return.

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