Australian stocks: shares edge up to fresh record

SYDNEY - Australian shares edged up 0.2 per cent on Thursday to set a record closing peak for a second straight day, helped by earnings-inspired gains in the nation's top bank National Australia Bank.

The benchmark Australian S&P/ASX 200 Index .AXJO rose 12.3 points to 5,364.5, based on the latest Reuters data, erasing Wednesday's record.

Heavy building materials maker Rinker Group slipped 1.5 per cent to A$21.07, despite a 50 per cent increase in annual profit, a special dividend and a capital return, as some investors cashed out after the stock out-performed the broader market's gains this year.

"The only surprise was the capital management and special dividend, the rest was pretty much in-line," said David Walsh, a portfolio manager with Barclays Global Investors.

"Rinker ran very hard into its result. Guidance was unchanged from what was given a month ago.. so a little profit taking is in order," said Grant Oshry, head dealer with funds manager, Perennial Value, which oversees about A$10 billion but does not hold Rinker.

Stocks to watch

* National Australia Bank Ltd., the nation's top bank, rose 1.3 per cent to A$37.26 on posting a 9 per cent rise in first-half earnings on stronger lending, meeting analysts' forecasts.

* Toll Holdings Ltd. gained 2.7 per cent to A$15.41 and Patrick Corp. Ltd. added 2.5 per cent to A$9.12 after Toll secured 52.3 per cent of Patrick's shareholding, giving it control of Patrick and ending an eight-month takeover battle.

* The world's second-biggest zinc producer Zinifex Ltd. added 4.5 per cent to A$13.34, energy project manager WorleyParsons Ltd. firmed 0.6 per cent to A$19.51, Goodman Fielder Ltd. GFF.AX rose 1.8 per cent to A$2.24 and Paladin Resources Ltd. jumped 5.7 per cent to A$5.18, on being added to the MSCI World Index for Asia Pacific ex-Japan.

* The world's biggest miner BHP Billiton Ltd./Plc. BLT.L added 2.1 per cent to a record closing peak of A$32.00 and number two Rio Tinto Ltd./Plc. RIO.L rose 1.6 per cent to a new closing peak of A$87.15, after copper MCU3 extended its record-breaking bull run.

* News Corp. NWSa.N firmed 3 per cent to A$25.06 after its quarterly profit doubled as strong advertising at its television business outweighed profit declines for its films and newspapers.

- REUTERS