Eds: reissuing to fix day ref in par 2
SYDNEY, Jan 18 AAP – The Australian market is higher as news of Rio Tinto chief Tom Albanese’s resignation drives up mining stocks.
At 1028 AEDT on Friday, the benchmark S&P/ASX200 index was up 16.1 points, or 0.34 per cent, at 4,722.1 and the broader All Ordinaries index had added 17.2 points, or 0.36 per cent, to 4,795.9.
On the ASX 24, the March share price index futures contract was up 18 points at 4,739 with 8,298 contracts traded.
IG Markets market strategist Evan Lucas said Australian stocks had opened higher following news that Rio Tinto chief executive Tom Albanese had resigned after the miner was forced to make $US14 billion worth of writedowns.
Rio shares soared $1.23, or 1.9 per cent, to $65.83 at open.
“With Tom Albanese falling a bit on his sword with the $14 billion writedown and the two acquisitions that he had his hands in, being the Riversdale and the Alcan report of the last year, the market has taken it as a positive,” Mr Lucas said.
“The new CEO, Sam Walsh, is more of a trusted hand. He’s a bit steadier.
“He’s been with the company for a very long time. He started at the company in 1991 and he has been in control of their iron ore department for a very long time and has done very well under tricky and trying conditions.”
Mr Lucas said improved employment and housing data from the US had also helped the local market.
The mining giants all opened higher.
BHP Billiton added seven cents to $36.41 and Fortescue gained nine cents to $4.47.
In the US, the Dow Jones Industrial Average on Thursday closed 84.79 points (0.63 per cent) higher at 13,596.02.
In Europe, London’s FTSE 100 index of leading companies rose 0.46 per cent to 6,132.36 points and Frankfurt’s DAX 30 gained 0.58 per cent to 7,735.46 points.
In local economic news on Friday, the HSBC investment report is due out while Deloitte releases its Telecommunications, Media and Technology Predictions report for 2013.
Meanwhile, Qantas said it had reduced by one, to 14, the number of Dreamliner aircraft it would buy from Boeing, due to expectations of slowing long-haul route growth in its cut-price subsidiary Jetstar.
National turnover was 251.7 million shares worth $443.8 million, with 378 stocks up, 184 down and 277 unchanged.
