Miners, banks help Australian shares notch 3-1/2-month closing high

MGX Resources

30/12/2021 06:27

* Gold stocks top drag on benchmark
    * Fund manager Magellan top gainer
    * Miners hit near four-month high

 (Updates to close)
    By Dhriti Garg
    Dec 30 (Reuters) - Australian shares inched higher on
Thursday, rising for a sixth straight session to close at their
highest in more than three and a half months in thin trading
volumes, as miners and banks offset a broader sell-off.
    The S&P/ASX 200 index  .AXJO  edged up 0.05% to 7,513.40,
its highest close since Sept. 7, and was on track to post a
yearly gain of about 14%. Fund manager Magellan Financial Group
 MFG.AX  topped the benchmark, closing 3.7% higher.
    Miners  .AXMM  were the major boost to the benchmark, rising
half a percent to their highest in nearly four months. BHP Group
 BHP.AX  and Rio Tinto  RIO.AX  jumped about 1% each as iron ore
futures rebounded after three days of losses.  IRONORE/ 
    However, gold stocks  .AXGD  fell nearly 1% and were the top
drags, with heavyweights Newcrest Mining  NCM.AX  and Northern
Star Resources  NST.AX  declining 0.6% and 1.1%, respectively.
    Australian gold stocks have lost about 12% so far this year,
heading for their first annual decline since 2013, as the metal
was set for its worst performance in six years on rising real
yields and overall U.S. dollar strength.  GOL/ 
    However, with inflation picking up, the appeal of safe-haven
assets like gold is likely to increase.  urn:newsml:reuters.com:*:nL1N2RN00W
    "If we are going to have long lasting inflation, you want to
be in hard assets. That's commodities, that's precious metals,"
said Brad Smoling, managing director at Smoling Stockbroking.
    Since Australian gold miners are cheap at the moment, they
will get attractive for their growth and ability to pay cash
dividends going forward, Smoling said.
    Elsewhere, financials  .AXFJ  ended 0.2% higher, with only
Australia and New Zealand Banking Group  ANZ.AX  of the so
called "Big Four" banks ending in negative territory while the
other top three banks gained between 0.2% and 0.4%.
    Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50
index  .NZ50  rose 0.8% to 13,040.94, its highest close since
Nov. 9.

 (Reporting by Dhriti Garg in Bengaluru; Editing by Subhranshu
Sahu)
 ((Dhriti.Garg@thomsonreuters.com;))
 
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