Australia shares up 0.9 pct

The bookbuild for the float,which raised A400 million 358 million and valued the group at A1.2 billion,had already seen the price slashed to A5.96. It closed at A5.68.

The Reserve Bank said in the minutes of its August meeting that growth would be above average next year and inflation would be within target,keeping market views unchanged there would be no more rate hikes this year.

That helped retail stocks and the banks lift the market on the view that consumption and mortgage lending will pick up.

8220;The market thinks things are looking a bit better for the consumer,people think more about spending when rates are on hold,8221; said Macquarie Private Wealth division director Martin Lakos.

Leading the market higher were the top banks,up between 1.1 per cent and 1.7 per cent,and retailers including David Jones,which reports on Wednesday,up 1.6 per cent and Myer Holdings up 1.1 per cent.

But volumes were well below average with investors cautious in the final days before the Aug. 21 federal election. Opinion polls indicate the centre-left Labor government holds a narrow lead over the conservative opposition.

8220;The most important thing is having the result out of the way,whatever that will be,8221; Lakos said.

Australia8217;s benchmark Samp;P/ASX 200 index gained 38.5 points to 4,477.0. The index lost 0.5 per cent on Monday.

New Zealand8217;s benchmark NZX 50 index was weaker,ending down 0.6 per cent at 3,006.5.

Aviva Investors said in a note to clients that with 20 per cent of companies reporting so far,aggregate profits were running 2.5 per cent ahead of expectations,mainly on the back of better resources earnings which beat expectations by 7 per cent.

But among those reporting on Tuesday,the bigger moves were to the downside because of cautious outlooks.

Shares in OneSteel Ltd slipped 2.2 per cent to A3.11 after Australia8217;s second-largest steel producer posted a 12 per cent rise in profit,but warned that a patchy economic recovery would keep its margins under pressure.

Primary Healthcare shares fell 3.0 per cent to A3.24 after it posted a 21 per cent increase in full-year profit,but cautioned that earnings in the current fiscal year would come in at the lower end of guidance because of government funding cuts for medical services.

Shares in contractor Leighton Holdings benefited for a second day after the contractor posted a jump in full-year profit and painted a rosy outlook. The shares gained 3.6 per cent,adding to a 5.9 per cent rise on Monday.