Australian stocks: Miners boost shares to 5-mth highs

SYDNEY - Australian shares rose almost 1 per cent to a five-month closing high on Tuesday as firm commodity prices lifted miners, while Queensland Gas hit a record high on takeover hopes.

Australia's benchmark S&P/ASX 200 Index rose 49.5 points, or 0.95 per cent, to 5,248.6, based on the latest available data. The index gained 1.3 per cent last week.

Dealers said the market had put aside concerns over North Korea's nuclear ambitions, with investors shifting their focus to resource stocks on steadier metal prices.

"Generally there's a better turn to the metals market so there's a more positive feeling on it," said Shaw Stockbroking research manager Brent Mitchell.

In Australia, index heavyweight mining stocks rose after zinc prices touched a five-month high on Monday while nickel jumped to a record peak.

The world's top miner, BHP Billiton, rose 3.1 per cent to A$25.87 while the second-biggest miner, Rio Tinto, gained 3.2 per cent to A$71.05.

Among other resource stocks, Australia's second-largest nickel producer, Minara Resources, jumped 6.1 per cent to A$4.54, Kagara Zinc gained 3.9 per cent to A$5.90 while Woodside Petroleum rose 1.6 per cent to A$39.71.

Coal-seam gas firm and takeover target Queensland Gas rose 2.8 per cent to a record A$1.485 on hopes that it will receive a higher bid after it rejected a A$1.26 per share takeover offer from Santos. Santos fell 0.5 per cent to A$10.75.

Vision Systems lost 2.9 per cent to A$3.71 after Cytyc said it will not raise its A$3.25 offer to acquire the firm after Danaher topped its bid with an offer of A$3.75, possibly ending a three-way bidding war.

Meanwhile, Westfield Group, the world's top shopping mall owner, rose 1.3 per cent to an all-time high of A$19.62 after it said it has bought interests in two shopping malls for A$725 million.

Telstra fell 0.8 per cent to A$3.71, adding to Monday's 2.4 per cent slide, after the Australian government gave details of its A$8 billion stake sale in the telecoms company.

"Its share price gave an indication that it's not a must-rush-out-to-buy type of stock," said David Wong, head of equities at IAG Asset Management.

Dealers said that while the sale was well structured, there were no compelling reasons to buy the stock given the risks involved in the company's five-year transformation programme.

- REUTERS