The share market is back in positive territory as iron ore production news boosts the big miners and revived expectations of an interest rate cut help the banks.
The miners are the strongest performers after Brazilian giant Vale suggested it might take 30 million tonnes off the market in a positive sign for the iron ore price.
“The supply-demand imbalance may favour back into the miners’ court,” IG chief market strategist Chris Weston said.
BHP Billiton had gained 57.5 cents to $32.545, Rio Tinto was $1.28, or 2.2 per cent higher, at $58.43 and Fortescue Metals had lifted 15.5 cents, or 7.1 per cent, to $2.325.
Atlas Iron was flat at 12 cents after it reversed its decision of three weeks ago to shut its three mines and says it will keep running two of them.
The big banks are also firmer after a media report suggested the Reserve Bank was now likely to cut interest rates at its May meeting on Tuesday next week, which also boosted financial market pricing for some monetary policy easing.
“Again once, we’ve got that stimulus idea coming through,” Mr Weston said.
Commonwealth Bank had added eight cents to $88.95, ANZ had added nine cents to $34.08, Westpac had risen 18 cents to $36.64 and National Australia Bank was up two cents at $36.79.
Virgin Australia, which is 73 per cent owned by foreign airlines, was flat at 51 cents after it posted a narrower loss during the March quarter as its budget carrier Tigerair recovered to turn a small profit.
Telco shares were down with Telstra losing two cents to $6.21.
TPG Telecom was down for a second consecutive day, losing 18 cents, or two per cent, to $8.76 a day after iiNet gave it until Tuesday to up its $1.4 billion takeover offer following a $1.6 billion rival bid from M2.
KEY FACTS
* At 1200 AEST on Friday, the benchmark S&P/ASX200 index was 16.9 points, or 0.29 per cent, higher at 5,806.9.
* The broader All Ordinaries index was up 16.1 points, or 0.28 per cent, at 5,789.8.
* The June share price index futures contract was 30 points higher at 5,787, with 16,920 contracts traded.
* National turnover was 674.9 million securities worth $1.6 billion.
