Mega Miners May Snap Australian Stocks’ Two-Day Losing Streak

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Australia’s benchmark S&P/ASX 200 index rose 2.5 points to close 6,070.10 in Sydney, snapping a two-day losing streak that caused its worst weekly performance in about two months.

Materials stocks led the index higher after a Sanford C. Bernstein Ltd. report said that Rio Tinto Ltd. and BHP Billiton Ltd.’s shipments probably rose in the fourth quarter as competitor Vale SA’s fell. Incitec Pivot Ltd. declined after reporting the loss of another iron ore contract after the market closed on Thursday.

In New Zealand, the NZX 50 index fell 0.1 percent to 8,242.35. The gauge’s third straight daily decline capped its worst week since Nov. 2016 after closing at a record on Jan. 5.

ADVANCERS:

  • Beach Energy (BPT) +6.9%, highest since Oct. 2014; reports gas field discovery in Otway Basin, ests. net gas pay of 34m intersected across two primary targets
  • Galaxy Resources (GXY) +6.5%, Pilbara Minerals (PLS) +3.1%; pare Thursday’s losses
  • BHP Billiton (BHP) +2.2%, Rio Tinto +1.7%; Vale Q4 iron ore shipments fell y/y as rivals rose: Bernstein

DECLINERS:

  • Incitec Pivot (IPL) -4.2%, lowest since Oct. 16; will cease supplying of explosives products and services for Roy Hill when contract ends early next month
  • Automotive Holdings (AHG) -3%, lowest since Nov. 22
  • Abacus Property (ABP) -2.8%; Australian REITs likely to underperform again in 2018, Citi says

RELATED STORIES:

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  • For Australian stocks to watch, check out NI SWAU. Click NI AUSTREET for a wrap of analyst research notes
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