Local shares are rebounding as a surge in iron ore prices boosts the big miners.
Higher commodity prices were also boosting other sectors, and are likely to help break the share market’s recent losing streak, CMC Markets chief market analyst Ric Spooner said.
“When people start to see some buying momentum develop, as we’ve begun to see this morning kicked off by the move in resource stocks, that feeds on itself,” he said.
The market opened weaker following a late drop on Wall Street, but rebounded in late morning as the banks recovered from a weak start.
The miners drove the gains, with BHP Billiton up 75 cents at $33.35, Rio Tinto up $1.75 at $60.11 and Fortescue Metals 25 cents higher at $3.71.
Commonwealth Bank had added 19 cents to $74.32, ANZ was up seven cents at $31.08, Westpac had found 23 cents to $32.13 and NAB was 23 cents higher at $32.05.
Telstra shares were up two cents at $5.26 after the telco’s chief executive David Thodey reaffirmed the telco’s financial guidance for the year ahead at its annual general meeting.
KEY FACTS
* At 1225 AEDT on Tuesday, the benchmark S&P/ASX200 index was up 47 points, or 0.91 per cent, at 5,202.5.
* The broader All Ordinaries index was 45.5 points, or 0.88 per cent higher, at 5,198.6.
* The December share price index futures contract was up 51 points at 5,188, with 18,268 contracts traded.
* National turnover was 797 million securities worth $2.2 billion.