Australian stocks rose 0.4 percent on Thursday to a six-week high as global stocks and commodities hit multi-year highs on renewed confidence in global growth, putting the index a notch below key chart resistance at 4,800. Investors are entering 2011 in a relatively bullish mood, raising equity holdings to a 10-month high, increasing exposure to high-yield credit and cutting back on government debt, Reuters polls showed.
The benchmark S&P/ASX 200 index rose 20.6 points to 4,799.0, according to the latest data, the highest close since November 5, but off a session high of 4,811.9. The index is up 4.7 percent so far this month. "We've had a good Santa Claus rally but I think it's come to an end. It's had a very good run this month and we're very close right now to where it's going to close the year, at about 4,800," said E.L. & C. Baillieu Stockbroking director Richard Morrow.
"I don't think there's going to be anything special in the next few days but I think the resource sector will be strong running throughout January," he said. The 4,800-resistance level thwarted a rally in early November. The expiry of December exchange-traded options underpinned the Australian market on Thursday, helping stocks such as BHP Billiton which rose 1.4 percent to A$46.47. Thursday's turnover was just 0.6 percent of the recent daily average.
New Zealand's benchmark NZX 50 index gained 0.3 percent to 3330.7, shaking off data showing New Zealand's economy contracted by 0.2 percent in the third quarter. Coal miner Riversdale rose as high as A$16.84 after Rio made a A$16 per share bid, indicating investors anticipate a higher offer. The stock ended up 1.7 percent at A$16.57. Ports and rail operator Asciano rose 4.7 percent to A$1.665 after Dubai's DP World sold a 75 percent in its Australian operations for $1.5 billion to private equity firm Citi Infrastructure Investors.
Beach Energy rallied 7.4 percent to A$0.87 after it said drilling was complete at the first of a two-well shale gas exploration program and the well has been cased and suspended. News Corp rose to a 7-week high of A$16.72 after it sold Fox Mobile Group to Jesta Group for an undisclosed amount overnight. Earlier this week it won unconditional approval from the European Commission for its bid to acquire pay-TV operator BSkyB but still faces scrutiny by the British communications watchdog.
The stock ended up 1.4 percent at A$16.59. Wesfarmers rose 0.7 percent to A$32.40 after it refunded at more favourable terms a A$2.5 billion debt facility. Telstra rose 0.4 percent to A$2.78 on just a third its usual volume. The telco announced an impairment charge on its Octave business in China but said impairments were excluded from its earnings guidance.