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Big miners push ASX to two-week high

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A recovery in iron ore prices has propelled the big miners, pushing the Australian share market to a two-week high.

Mining giant BHP Billiton share prices rose to levels last seen in early March, with the materials stocks the strongest performers on a broader market edging closer to the 6,000-point level.

This followed a 25 per cent surge in the price of iron ore since the start of April and another strong performance on Friday night for the steel making commodity, Bell Direct equities analyst Julia Lee said.

“BHP and Rio Tinto, investors are jumping back on board,” she said.

Among the big miners BHP shares jumped 52 cents, or 1.6 per cent, to $32.57.

Rio Tinto climbed $1.98, or 3.4 per cent, to $59.77 while iron ore player Fortescue lifted 36 cents, or 16.3 per cent, to $2.57.

PanAust added one cent to $1.75 after the gold and copper miner urged shareholders to reject a $1.1 billion takeover offer from Chinese-state owned company Guandong Rising Asset Management.

But it was another takeover prospect which excited investors.

Internet service provider iiNet was $1.14, or 13.2 per cent, higher at $9.80 after rival M2 Group put forward a takeover offer, setting the scene for a possible bidding war with TPG Telecom.

“It does look like the start of that bidding war,” Ms Lee said.

Commonwealth Bank lifted 62 cents to $92.72, National Australia Bank climbed 38 cents to $38.45, Westpac gained 43 cents to $38.85. But ANZ fell 14 cents to $35.58.

Bendigo Bank was up two cents at $12.12 after announcing it will issue around $200 million in new convertible preference shares.

Technology group Hills fell 14 cents, or 17.8 per cent, to 65 cents after warning that its full year profit could be up to 40 per cent lower than expected due to weakness across a number of sectors.

KEY FACTS

* At the close on Monday, the benchmark S&P/ASX200 index was 49.4 points, or 0.83 per cent, higher at 5,982.7

* The broader All Ordinaries index was up 48 points, or 0.81 per cent, at 5,954.8.

* The June share price index futures contract was 36 points higher at 5,974, with 26,073 contracts traded.

* The price of gold in Sydney at 1700 AEST was $US1,180.90 per fine ounce, down $US13 from $US1,193.90 on Friday.

* National turnover was 1.9 billion securities worth $5.2 billion.