australian oil stocks gain, led by bhp billiton an Australian...

australian oil stocks gain, led by bhp billiton an Australian Oil Stocks Gain, Led by BHP Billiton and Woodside

March 14 (Bloomberg) -- Australian stocks rose, led by oil producers such as BHP Billiton after crude oil prices in New York gained, boosting optimism their earnings will rise.

Rio Tinto Group gained after UBS AG said its London-based shares will rise 14 percent.

The S&P/ASX 200 Index added 4.40, or 0.1 percent, to 4208.20 as of 11:19 a.m. in Sydney. About nine stocks gained for every eight that fell. Melbourne is closed for a public holiday.

A measure of commodities stocks, including BHP and Woodside, was the biggest contributor to the index's gain out of 10 industry groups. The benchmark has gained 4 percent this year as companies such as BHP and Rio reported record profits in February amid surging demand for raw materials from China.

``While we have been looking for a 10 percent or so return from Australian shares this year, the stronger than expected December half profit results combined with significant upside risk for mining stocks suggests that this is likely to prove conservative with 15 percent looking more likely,'' said Shane Oliver, who helps manage the equivalent of $54 billion as head of investment strategy at AMP Capital Investors Ltd. in Sydney.

Oliver forecast the index will rise a further 5.7 percent to 4450 this year, Oliver said in a note to clients.

New Zealand's NZSX 50 Index was little changed, slipping 0.87 point to 3148.89 as of 1:18 p.m. in Wellington. Shares of Warehouse Group Ltd., New Zealand's biggest retailer, rose.

BHP gained 22 cents, or 1.2 percent, to A$18.94. Woodside Petroleum Ltd., Australia's second-biggest oil producer, surged 61 cents, or 2.6 percent, to a record A$24.22.

Crude oil in New York rose 1.7 percent to $54.43 a barrel Friday after the International Energy Agency increased its estimate for global demand for a third straight month. Oil was $54.37 in after-hours trading as of 11:12 a.m. Sydney time.

The S&P/ASX 200 Index's futures contract for March added 0.1 percent to 4205. The broader All Ordinaries Index rose 0.2 percent to 4199.90.

The following stocks also rose or fell. The stock symbols are in brackets after the company names.

Australian stocks:

Macarthur Coal Ltd. (MCC AU) climbed 30 cents, or 4.4 percent, to A$7.10. The Australian supplier of coal to steelmakers said it secured extra port capacity for its exports to avoid congestion at the Dalrymple Bay terminal in northeastern Australia.

Separately, Chief Executive Ken Talbot said his 43 percent stake in the coal miner isn't for sale, the Australian newspaper reported. Talbot, who founded Macarthur in 1996, told the newspaper he wouldn't sell even if offered a 20 percent premium for his stake.

Rio Tinto Group (RIO AU), the world's third-biggest miner, gained 69 cents, or 1.5 percent, to A$47.45. UBS AG raised its 12- month share-price forecast for Rio's London-based shares (RIO LN) to 2,050 pence, or 14 percent above the stock's close of 1,797 pence on Friday.

Rio is following bigger rival BHP Billiton in buying back stock after profit soared to a record as Chinese demand fueled a surge in commodity prices.

WMC Resources Ltd. (WMR AU), the nation's fourth-biggest miner, dropped a cent, or 0.1 percent, to A$7.93. Rio Tinto has less than a 20 percent chance of submitting a bid to rival BHP Billiton's A$9.2 billion ($7.3 billion) offer for nickel miner WMC Resources, Vicky Binns, an analyst at Merrill Lynch & Co., said in a March 11 note. WMC on Friday said it stopped seeking other proposals after accepting BHP's offer of A$7.85 a share.

New Zealand:

Warehouse Group Ltd. (WHS NZ), New Zealand's biggest retailer rose 14 cents, or 3.6 percent, to NZ$4.08. The company reiterated its full-year forecast for profit of NZ$66 million ($48.9 million) to NZ$71 million, made on Jan. 19. It said first-half profit fell 2.8 percent to NZ$53.9 million as cooler summer weather and increased rivalry crimped sales over the key Christmas period.