Sept. 12 (Bloomberg) -- Australia's S&P/ASX 200 Index was little changed. Gold mining stocks, such as Newcrest Mining Ltd., rose after prices gained and traders surveyed by Bloomberg said the metal may reach a 17-year high on increased demand.

Telstra Corp. dropped after a senator, whose support the government needs to pass laws, said he'll withdraw support for the sale of the government's stake unless it changes legislation to give more funding to rural areas.

The S&P/ASX 200 Index added 0.8 point to 4468.90 as of 12:09 p.m. in Sydney. About 11 stocks advanced for every six that fell. The benchmark earlier gained as much as 0.3 percent and fell as much as 0.1 percent.

Stocks including OneSteel Ltd. and West Australian Newspapers Holdings Ltd. traded without the right to their latest dividends, weighing on the index.

``I expect the index to meander for a while,'' said Jason Teh, who helps manage about $3.9 billion at Investors Mutual Ltd. ``We just finished earnings season so the index will struggle to do much until we get more substantial earnings news.''

New Zealand's NZX 50 Index fell 0.2 percent to 3380.46 as of 1:02 p.m. in Wellington. Carter Holt Harvey Ltd., the biggest lumber maker in Australia and New Zealand, declined.

Newcrest Mining, Australia's biggest gold miner, rose 37 cents, or 2.1 percent, to A$18.22. Lihir Gold Ltd., which owns a mine in Papua New Guinea, added 5 cents, or 3.4 percent, to A$1.52.

Gold prices may rise to a 17-year high on increased demand from jewelry makers, the biggest users of the precious metal, 24 of 35 traders surveyed by Bloomberg said. Gold for December delivery recently climbed 0.4 percent, to A$454.90 an ounce in New York. A rally above $458.70 would be the highest price since June 1988.

Telstra

Telstra, Australia's biggest phone company, dropped 3 cents, or 0.7 percent, to A$4.32. Australian Nationals party Senator Barnaby Joyce told Channel Nine's Business Sunday program he wants certainty that at least A$2 billion will be invested to improve communication services in rural regions of the country before he decides whether to support the government's sale of its 51.8 percent stake in Telstra.

The S&P/ASX 200 Index's futures contract for September dropped 1 point to 4470. The broader All Ordinaries Index fell 0.5 point to 4432.0.

The following shares also rose or fell. The stock symbols are in brackets after the company names.

Australian stocks:

Babcock & Brown Infrastructure Group (BBI AU) gained 2.5 cents, or 1.4 percent, to A$1.78. It's studying a plan to expand its U.K. natural gas distribution business into electricity, the Australian Financial Review said, citing Chief Executive Steve Boulton.

Biota Holdings Ltd. (BTA AU), an Australian maker of influenza drugs, surged 10.5 cents, or 14 percent, to 84.5 cents. The company cited unnamed media reports as saying the Dutch government was stockpiling anti-viral drugs, including Biota's Relenza flu drug, to prepare for the possibility of a flu epidemic.

Challenger Financial Services Group Ltd. (CGF AU) lost 12 cents, or 3.1 percent, to A$3.76 after the shares were reduced to ``underperform'' at Credit Suisse First Boston after a 5 percent rally since Sept. 1, when the company's infrastructure fund said it bought Inexus, a U.K.-based gas transporter.

Quiktrac Networks Ltd. (QTK AU), a security technology company, soared 7.5 cents, or 38 percent, to 27 cents. The company said it won a contract in Beijing to provide security monitoring systems leading up to the Beijing Olympics in 2008. The contract will add A$380 million ($294 million) in sales over the next five years, the company said in a statement.

New Zealand:

Carter Holt Harvey Ltd. (CAH NZ), the biggest lumber maker in Australia and New Zealand, fell 3 cents, or 1.2 percent, to NZ$2.50. The company said full-year earnings may miss its July forecast by as much as 12 percent because of weaker prices for wood pulp and lumber.

To contact the reporter for this story: Stuart Kelly in Sydney skelly22@bloomberg.net

Last Updated: September 11, 2005 22:22 EDT