Banks help Australian shares notch record closing high

Reuters
02-12
Banks help Australian shares notch record closing high

Updates to close

CBA leads financials to record high on robust earnings

Computershare leads gains on benchmark on forecast hike

Miners fall on U.S. tariff threats, Rio Tinto down 0.6%

By Roushni Nair and Kumar Tanishk

Feb 12 (Reuters) - Australian shares notched a record closing high on Wednesday, as top lender CBA led banks higher on robust half-yearly earnings, while financial services provider Computershare jumped after raising its annual profit forecast.

The benchmark S&P/ASX 200 .AXJO rose 0.6% to a record close of 8,535.3, as investors evaluated the earnings of Commonwealth Bank of Australia CBA.AX, Computershare CPU.AX, Suncorp Group SUN.AX, and AGL Energy AGL.AX, among others.

Shares of CBA, which alone accounts for nearly 10% of the benchmark index, jumped to a record high after an improving economy enabled the lender to slash loan impairment charges and log a 2% rise in half-yearly profit.

CBA led financials .AXFJ to a record high. National Australia Bank NAB.AX, Westpac WBC.AX and ANZ Group ANZ.AX rose 1.68%, 1.14% and 0.7%, respectively.

Computershare led gains on the benchmark index and hit a record high for the second consecutive session, after the company increased its annual earnings forecast and said its first-half net income nearly doubled from a year earlier.

Consumer-focused stocks .AXSJ rose by their most since December 3, driven by a 4.2% gain in Star Entertainment SGR.AX following bids for its Brisbane joint venture and a 2.3% increase in JB Hi-Fi JBH.AX on positive half-yearly earnings.

Miners .AXMM fell 0.4% as iron ore prices declined on new tariff threats from U.S. President Donald Trump. Rio Tinto RIO.AX slipped 0.6%.IRONORE/

When funds shift towards other sectors like banks, miners may be used as a source of capital to fund these new investments, said Matthew Haupt, a portfolio manager​​​​ with Wilson Asset Management.

In New Zealand, the benchmark stock index .NZ50 closed flat.

Investors are now focusing on upcoming central bank meetings in the region next week.

The Reserve Bank of Australia is expected to lower its cash rate by a quarter-point on Tuesday, while the Reserve Bank of New Zealand is anticipated to decrease its rate by half a point on Wednesday. 0#NZDIRPR 0#AUDIRPR

(Reporting by Roushni Nair and Kumar Tanishk in Bengaluru; Editing by Subhranshu Sahu)

((Tanishk.Kumar@thomsonreuters.com; roushni.nair@thomsonreuters.com))

For more information on DIARIES & DATA: U.S. earnings diary  RESF/US   Wall Street Week Ahead   .N/O Global Economy Week Ahead DATA/ ................................................................ For latest top breaking news across all markets          NEWS1

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