The Australian share market closed higher as the resources sector staged a recovery due to a jump in commodity prices.
CMC Markets chief market analyst Ric Spooner said Australian market turned its attention away from the high yielding stocks, which have been performing well for some time, to the resources shares.
“The driving factor in today’s market was the strength in the much maligned resources sector,” he said.
“This was due to better than expected US employment figures which in turn led to a jump in commodity prices particularly for copper and oil.”
BHP Billiton surged 90 cents to $32.87, Rio Tinto jumped $1.71 to $56.20 and Fortescue soared 20 cents to $3.61.
However, the four major banks closed mixed with the Commonwealth Bank the only one to end on a high.
National Australia Bank lost 24 cents to $33.50, ANZ fell nine cents to $31.51 and Westpac slipped 38 cents to $33.17.
Commonwealth Bank gained 61 cents to $71.67.
Australian Bureau of Statistics figures, on Monday morning, showed that retail spending fell 0.4 per cent for March but was up 2.2 per cent for the quarter.
Mr Spooner said the figures had little effect on the market as they cancelled it each other out and were unlikely to affect the Reserve Bank of Australia’s decision on interest rates on Tuesday.
Orica shares closed up 36 cents to $22.56 after the explosives and chemical supplier announced its first half net profit was up six per cent to $267 million.
Leighton shares were up 42 cents to $19.43 after the construction giant still expects to make a full year profit of up to $600 million after completing what it said was a pleasing first quarter.
KEY FACTS
* At the close on Monday, the benchmark S&P/ASX200 index was up 26.7 points at 5,156.2 points.
* The broader All Ordinaries index was 28.4 points higher at 5,133.8 points.
* The June share price index futures contract was 26 points higher at 5,153 points, with 23,082 contracts traded.
* The price of gold in Sydney was $US1,472.51 per fine ounce, down $US3.39 on Friday’s closing price of $US1,475.90.
* National turnover was 1.39 billion securities worth $3.64 billion.
