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Shares higher on mining gains

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The share market has closed higher as gains by the big miners offset losses in the financial sector.

The roles had been reversed from recent days, with big miners performing strongly on higher iron ore prices and financial stocks losing ground due to reduced chances of an interest rate cut, IG market analyst Stan Shamu said.

“It’s not what we’ve been seeing recently,” he said.

“The bounce in iron ore has helped the mining players and Fortescue’s done well because it’s sorted out some of its short-term funding requirements, so that’s been enough to push the materials space higher.”

Gains in the oil price also helped energy stocks but yield plays such as the big four banks were under pressure.

“The uncertainty is keeping investors on the back foot,” he said.

BHP Billiton gained 79 cents to $31.06, Rio Tinto added $1.10 to $56.30 and Fortescue Metals jumped 18.5 cents, or 9.7 per cent, to $2.09 after raising $US2.3 billion in an oversubscribed bond offer.

Junior miner BC Iron was also stronger after its quarterly update showed a reduction in costs, with its shares adding 14 cents, 54 per cent, to 40 cents.

Gold miner Newcrest fell 50 cents, or 3.4 per cent, to $14.10 despite a rise in production and a weaker Australian dollar lifting its prices in the three months to March.

Commonwealth Bank dropped 40 cents to $90.72, National Australia Bank shed 27 cents to $37.84, ANZ gave up 23 cents to $35.26 and Westpac was 11 cents lower at $38.18.

Woolworths dropped 16 cents to $28.10 and Coles owner Wesfarmers was 32 cents weaker at $42.13.

KEY FACTS

* At the close on Thursday, the benchmark S&P/ASX200 index was up 7.3 points, or 0.13 per cent, at 5,844.8.

* The broader All Ordinaries index was up 7.5 points, or 0.13 per cent, at 5,820.3.

* The June share price index futures contract was six points higher at 5,830, with 18,470 contracts traded.

* The price of gold in Sydney at 1700 AEST was $US1,186.50 per fine ounce, down $US17.10 from $US1,203.60 on Thursday.

* National turnover was 1.75 billion securities worth $5.4 billion.