The Australian market is higher after mining giant BHP Billiton’s half-year production report exceeded expectations and following strong leads from the US.
At 1028 AEDT on Wednesday, the benchmark S&P/ASX200 index was up 22 points, or 0.46 per cent, at 4,801.1 and the broader All Ordinaries index up 21.4 points, or 0.45 per cent, to 4,824.3.
On the ASX 24, the March share price index futures contract was up 25 points at 4,767 with 9,034 contracts traded.
CMC Markets chief strategist Michael McCarthy said the Australian market had opened higher after strong leads from Wall Street and a better than expected production report from mining giant BHP Billiton.
“We saw positive leads from the US market overnight and since the close there we’ve seen some tech reports which suggest we’ll see further gains in the US market tonight and the Dow futures have run ahead as well,” Mr McCarthy said.
“We are also seeing a positive response to BHP’s production report this morning. Its shares are lifting the market up almost one per cent at the moment and of course BHP is still the largest weight in the ASX200 and its also informing the broader mining space.”
BHP Billiton said its Western Australia operations produced 81.96 million tonnes of iron ore in the six months to December 31, up two per cent on the same period in the previous year.
In the three months to December, iron ore production totalled 42.19 million tonnes, up three per cent. Analysts had forecast a flat result for iron ore in the three months to December.
The company maintained its full-year iron ore production forecast at 183 million tonnes.
BHP Billiton shares rose 43 cents, or 1.18 per cent, to $37.01.
Fellow miner Fortescue added three cents to $4.67 but Rio Tinto fell three cents to $66.86.
Pesticide company Nufarm said hot and dry conditions in eastern Australia had hit its earnings but a better than expected performance from its operations in South America and Europe would offset the weaker Australian business.
Its shares had fallen 50 cents, or 7.9 per cent, to $5.83 by 1055 AEDT.
Meanwhile, building products maker Boral upgraded its underlying first-half profit forecast, due to cost saving measures and improved trading conditions in the lead-up to Christmas.
Boral now expects its net profit for the six months to December 31, excluding one-off items, to be about $52 million, up from its previous forecast of about $35 million.
Its shares were down 1.5 cents, at $5.83 at 1057 AEDT.
National turnover was 278.3 million shares worth $492.7 million, with 346 stocks up, 238 down and 252 unchanged.
