Australia shares creep higher; builders advance

MELBOURNE, April 29 - Australian shares crept higher on Wednesday, turning from a loss as builders such as Boral Ltd <BLD.AX> helped offset falls from banks after Australia and New Zealand Banking Group Ltd's <ANZ.AX> profit disappointed.

The benchmark S&P ASX/200 index <.AXJO> gained 10 points, or 0.3 percent, to 3,718.4 by 0329 GMT, after falling 0.6 percent on Tuesday. New Zealand's benchmark NZX 50 index <.NZ50> gained 8.9 points to 2,695.3.

STOCKS ON THE MOVE

* Boral Ltd gained 2.1 percent to A$3.83 and James Hardie Industries <JHX.AX> gained 1.1 percent to A$4.45 after an industry survey said sales of new houses in Australia climbed for a third straight month. [nSYD493544]

0327 GMT

* BlueScope Steel <BSL.AX> dropped 4.8 percent to A$2.37 and its main rival OneSteel <OST.AX> fell 4.4 percent to A$2.17, partly on worries about the costs of a carbon trading scheme due to start in Australia next year. A report in The Australian newspaper said BlueScope chairman Graham Kraehe attacked the continued commitment to an emissions trading plan and said it could cost thousands of jobs. [nSYD496477]

0327 GMT

* Ausenco Ltd <AAX.AX> shares rose 10.6 percent to A$3.45. The chief executive of the mining engineering and management company, Zimi Meka, told shareholders that while the outlook for 2009 and beyond was challenging its broad earnings base meant it was well positioned to identify and take advantage of opportunities.

0325 GMT

* Fortescue Metals Group <FMG.AX> slipped 3.3 percent to A$2.34 after the iron ore miner revised down its full year sales forecast by 15 percent to 26 million tonnes following heavy rains in the March quarter. For more, see [ID:nSYU006413].

0324 GMT

* ANZ led bank shares lower, falling 5.1 percent to A$15.78 after the group said its first-half profit slid 43 percent as bad debt provisions doubled. It also warned provisions were expected to remain an issue through to early 2010. Citigroup cut it recommendation on the stock to a sell. For more on ANZ, see [ID:nSYD432219]

National Australia Bank Ltd <NAB.AX> shares also fell 2.6 percent to A$20.70, adding to a 3.5 percent fall on Tuesday which came after it warned that its level of bad debts was likely to get worse before it improved.

0324 GMT

* OZ Minerals Ltd <OZL.AX> rose 5.2 percent to A$0.71 after the debt-laden miner released its first-quarter production report and said it continued to work with lenders to secure further extensions so it can complete a takeover deal with China's Minmetals. For more, see [ID:nSYD504854].

0127 GMT

* Straits Resources Ltd <SRL.AX> rose 2 percent to A$1.535 after the miner said a recent deal, where Thailand's PTT International <PTT.BK> agreed to buy 60 percent of Straits Bulk and Industrial for up to $335 million, had reached financial close.

0126 GMT