Australian shares are firmer as rosier production figures from the world’s biggest miner BHP Billiton helps boost the overall market.
While Wall Street finished flat, Baillieu Holst director Richard Morrow said, BHP’s upbeat forecasts helped drive local optimism.
“It’s generally set a pretty good tone for the rest of the day and I’d expect us to finish in the positive today,” he said.
“The star of the show today is BHP and the bulk commodities, Rio tailing on behind that.”
BHP Billiton gained 71 cents, or 1.96 per cent, to $36.91, after upgrading its iron ore production guidance for the fiscal year from 207 to 212 million tonnes and beating forecasts during the September quarter.
Fellow miner Rio Tinto Rio Tinto added 42 cents to $64.17, while Fortescue Metals Group found 1.5 cents to $5.465. But gold miner Newcrest shed half a cent to $10.755.
Meanwhile, department store chain David Jones defied the market’s positive lead, losing seven cents to $2.78 after chief executive Paul Zahra announced, after the market had closed on Monday, that he would quit for personal reasons.
“It’s a surprise … today’s reaction is a knee-jerk reaction to that,” Mr Morrow said.
Among the major banks, Westpac lost five cents to $34.03, ANZ shed two cents to $32.10, National Australia Bank was flat at $35.97, but Commonwealth Bank gained 22 cents to $74.77.
Property group Mirvac gained three-quarters of a cent to $1.7675 after indicating it was on track to reach its full-year earnings target and deliver a net profit of between $428 million and $443 million in 2013/14.
Regional media group APN News and Media added three cents to 45 cents after announcing it would move to sell its remaining stake in its outdoor advertising business to private equity group Quadrant Private Equity for $69 million.
KEY FACTS
* At 1015 AEDT on Tuesday, the benchmark S&P/ASX200 index was 13.9 points, or 0.26 per cent, higher at 5,365.7 points.
* The broader All Ordinaries index was up 13.1 points, or 0.24 per cent, at 5,364.6 points.
* The December share price index futures contract was 18 points higher at 5,354 points, with 4,783 contracts traded.
* National turnover was 206.0 million securities worth $233.5 million.
