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Aussie shares ease for third day, Santos surges; NZ up

Tue, 03rd Apr 2018 07:55

* BHP biggest boost for index, ANZ largest drag

* Santos top gainer after $10.4 bln takeover bid

* NZ's Fletcher Building hits more than 5-1/2-year low(Updates to close)

By Susan Mathew

April 3 (Reuters) - Australian shares ended slightly loweron Tuesday, as gains in material stocks and a surge in energycompany Santos countered losses in financial and industrialstocks.

The S&P/ASX 200 index closed 0.13 percent, or 7.5points, lower at 5,751.9, marking its third straight day oflosses.

"I think it's just concern over a couple of things. Maybesigns of a slowdown in growth, a peaking in growth momentum ofstocks, various discussions over the IT sector in the U.S. andalso the prospect of a trade war, are combining to undermine themarket," said Damien Hennessy, co-founder of HeuristicInvestment Systems.

Meanwhile at home, the Reserve Bank of Australia stood paton its cash rate at 1.5 percent, marking the 20th month withouta change and looked set to extend the period of "masterfulinaction" for some time.

Financial stocks ended lower with three of the 'Big Four'banks down between 0.1 percent and 1.2 percent. ANZposted its longest losing streak since June 2016.

Toll road operator Transurban Group and consumerstock Aristocrat Leisure were among other drags, down1.7 percent and 2.7 percent, respectively.

On the other hand, Santos was the top gainer on thebenchmark, closing 16.2 percent higher, after it received a$10.4 billion unsolicited takeover offer from U.S. energyinfrastructure investment company Harbour Energy.

Santos said that it would engage with Harbour this timeafter it rejected their bid last year.

Miner BHP boosted the benchmark the most, up 1.8percent, while gains in global miner Rio Tinto of 2.1percent and gold miner Newcrest Mining of 2.3 percent,were supported by higher prices of underlying commodities.

Newcrest shares were supported also by processingrecommencing at it flagship Cadia mine.

Energy stocks also had a good session with WoodsidePetroleum ending up 0.7 percent, underpinned by firmeroil prices.

New Zealand's benchmark S&P/NZX 50 index finished10.86 points, or 0.13 percent higher, at 8,329.93.

Utility companies Meridian Energy and Mercury NZLtd led gains by rising 2.5 percent each, whileconstruction firm Fletcher Building and RymanHealthcare, led losses. Fletcher fell 1.7 percent,hitting its lowest since July 2012.(Reporting by Susan Mathew in Bengaluru; Additional reportingby Ambar WarrickEditing by Jacqueline Wong)

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