News from AAP

Aust market up more than one per cent

Print This Post A A A

Strong gains by the big miners and major banks have pushed the Australian share market higher for a third straight session.

A lift in the iron ore price to $US60.48 a tonne overnight, following surprisingly upbeat trade data out of China on Wednesday, helped boost most of the big mining stocks.

The local bourse also improved in the wake of strong leads from US markets and European markets. US stocks climbed as quarterly earnings results from the largest bank in the US, JPMorgan Chase, lifted the financial sector.

OptionsXpress market analyst Ben Le Brun said the materials sector led the way upwards on the local bourse, joined by the major banks and the consumer staples sector.

“There’s optimism and a buoyant mood at this stage,” he said.

“It’s very much based on the JPMorgan result in the US last night, but commodities are very much back in vogue at the moment, and investors and traders are lapping it up.”

In the resources sector, global miner BHP Billiton was up 95 cents, or 5.3 per cent, at $18.87, Rio Tinto lifted $1.22 to $48.60, and Fortescue Metals was steady at $3.19.

Whitehaven Coal surged 6.5 cents, or 9.7 per cent, to 73.5 cents.

Whitehaven is betting on rising Asian demand for higher quality coal as it ramps up production despite weaker prices.

In the banking sector, Commonwealth Bank added 98 cents to $74.71, National Australia Bank climbed 64 cents to $26.73, Westpac ascended 79 cents to $30.73, and ANZ improved 43 cents to $23.77.

Among the consumer staples stocks, Wesfarmers, which owns Coles and Bunnings, was up 94 cents at $40.70, and Woolworths strengthened 88 cents, or 4.19 per cent, to $21.87.

GUD Holdings picked up 70 cents, or 9.7 per cent, to $7.92 after it announced its exit from the small appliances business through the sale of its remaining stake in the Sunbeam brand.

Market operator ASX Ltd put on $1.11 at $42.70 after it reported a rise in profit for the nine months to March 31, underpinned by robust trading activity.

KEY FACTS:

* At 1627 AEST, the benchmark S&P/ASX200 index was up 63.9 points, or 1.26 per cent, at 5,118.6 points.

* The broader All Ordinaries index was up 60.5 points, or 1.18 per cent, at 5,187.7 points.

* The June share price index futures contract was up 58 points at 5,095 points, with 32,986 contracts traded, according to preliminary calculations.

* Preliminary national turnover was 2.19 billion securities traded, worth $4.88 billion.