rumours of a gold discovery? $$$, page-18

australian stocks near record high, qbe shines Australian stocks near record high, QBE shines
September 7, 2004 6:23am ET (Reuters)

(Updates to market close)

By Ian Chua

SYDNEY, Sept 7 (Reuters) - Australian stocks rose nearly 0.4 percent on Tuesday, propelling the key index towards its record high thanks to gains in QBE Insurance which cheered investors with plans to restructure its European operations.

The benchmark S&P/ASX 200 index climbed 12.5 points, or 0.35 percent, to 3,589.4, just shy of its all-time high of 3,595.0 set on Friday. But turnover was again below the A$2.2 billion ($1.5 billion) average at A$1.8 billion.

A positive lead from European shares helped give the market a bid tone although volume was restrained by a lack of direction from Wall Street, which was shut on Monday for the Labour Day holiday.

"Also, the dollar pulling back below 70 cents is a big fillip for export stocks," said David Halliday, associate director at Macquarie Equities.

QBE Insurance was a stand-out among the major stocks, gaining 3.4 percent to A$12.94 after the company said it would streamline its European operations to achieve cost savings and efficiencies.

"It looks like a sensible strategy," said Rohan Walsh, head of Australian equities at Invesco, adding that a strong profit result from Lloyd's of London insurer Amlin also helped QBE -- the biggest underwriter in the Lloyd's of London market.

Further supporting the overall market, News Corp's preferred shares advanced 0.7 percent to A$10.60, diversified miner BHP Billiton gained 0.2 percent to A$13.35, while supermarket chain Woolworths climbed 1.2 percent to A$13.12.

Elsewhere, the big four banks were mixed with Commonwealth Bank and Westpac Bank losing ground, but ANZ put on 0.8 percent to A$18.60 while National Australia Bank added 0.5 percent to A$27.26.

Miller's Retail lost 4.3 percent, or 6 cents, to A$1.33 as it traded ex-dividend by 4 cents, while industrial and hardware group Hills Industries gave up 3.5 percent, or 15 cents, to A$4.15 as it went ex-dividend by 11.5 cents.

Four Australian childcare companies were placed on a trading halt on Tuesday, sparking speculation of a possible rationalisation in the sector.

ABC Learning Centres , Child Care Centres Australia and Peppercorn Management , along with Peppercorn Investment Fund , which owns centres operated by Peppercorn Management, all requested a halt in trading.

"We would presume it is ABC making the moves here," said an analyst who declined to be named.

The Reserve Bank of Australia held its monthly policy-setting meeting on Tuesday, but is widely expected to keep interest rates on hold ahead of an Oct. 9 Federal election. Any rate changes would be made at 9:30 a.m. (2330 GMT) on Wednesday. End of Story