Australian stocks: Media shares boosted

SYDNEY - Australian shares rose 0.4 per cent on Wednesday as gains in copper prices lifted global miners such as BHP Billiton Ltd. and Rio Tinto Ltd.

Australia's benchmark S&P/ASX 200 index added 21.1 points to 5,128.3, based on the latest Reuters data. It fell on Tuesday after scaling a seven-week closing high on Monday.

Media companies also got a boost after some newspapers reported that the cabinet on Tuesday had approved media industry reforms to scrap cross media and foreign ownership limits.

"Focus is coming back on the government media policy, which could get rid of cross media ownership restrictions," said Sean Fenton, a portfolio manager with Jenkins Investment Management, which oversees about A$1 billion in local shares.

"That opens the possibility of corporate activity in some of the media companies," he added.

Stocks to watch

* John Fairfax Holdings Ltd., Australia's second-biggest newspaper publisher, gained 2.6 per cent to A$3.90 while broadcaster Ten Network Holdings Ltd. added 1.8 per cent to A$2.85.

* BHP Billiton Ltd. the world's top miner, added 2 per cent to A$29.50 and Rio Tinto Ltd., the second-biggest miner, gained 1.7 per cent to A$78.56. Copper MCU3 climbed towards $8000 to a five-week high.

* QBE Insurance Group Ltd. added 3.3 per cent to A$21.20. QBE raised £ 300 million in the US private placement market to repay short-term debt and to provide balance sheet strength for future growth. QBE has been making bolt-on acquisitions to grow its business offshore.

* Sally Malay Mining Ltd. jumped 12.5 per cent to A$1.35 after it said exploration work had lifted the nickel resource at its Lanfranchi mine by a third to 6100 tonnes of metal.

* Interactive TV games operator Two Way Australia Ltd. jumped 23.1 per cent to A$0.40 on signing a three-year deal with Hong Kong's PCCW Ltd. to provide interactive games.

* Investment and advisory firm Babcock & Brown Ltd. added 1 per cent to A$21.50. Citigroup started coverage of Babcock with a "buy" rating and a 12-month share price target of A$26.89.

* Australian Gas Light Co. Ltd., the nation's top power retailer, firmed 1.9 per cent to A$17.90 on raising its fiscal 2006 profit forecast by up to 5 per cent due to a cold start to winter.

* Retailer Coles Myer Ltd. slipped 2.3 per cent to A$11.72. Citigroup cut its rating on Coles to "sell" from "hold", saying the company faced earnings pressure on all fronts and was losing market share in its food and liquor business.

* Online betting company Centrebet International Ltd. ended at A$2.00 on its first trading day after raising A$70 million through initial public offering at A$2.00 per share. It listed 1.5 per cent higher than the offer price.

* Gold producers benefitted after a rally in bullion prices to one-month highs. Gold firmed on safe-haven flows after a series of bomb explosions in India's financial centre, Mumbai, killed more than 180 people. Lihir Gold Ltd. firmed 2.7 per cent to A$3.10.

* Westpac Banking Corp., Australia's fourth-largest lender, shed 1.6 per cent to A$22.17. UBS cut its 12-month share price target on Westpac to A$23.50 from A$25. ($1=A$1.33) ($1=NZ$1.64)