The share market has fallen after the release of weak manufacturing data from the world’s second largest economy.
Factory activity in China contracted at its fastest rate in a year in April, according to a regular survey by HSBC.
The release of the data just before noon (AEST) sent the main indices on the local share market into negative territory, due to a tempering of the gains made by the mining sector in earlier trade.
“Positive sentiment rushed back into resource stocks this morning with spot iron ore surging overnight,” Quay Equities head of trading Tristan K’Nell said.
BHP Billiton was up 59 cents at $30.86, Rio Tinto was up 88.5 cents at $56.085, and Fortescue Metals had gained 20.5 cents, or 10.8 per cent, to $2.11 after raising $US2.3 billion in an oversubscribed bond offer.
“The move secures FMG’s short term future, with CEO Nev Power commenting that it will be able to repay full debts due in 2017 and 2018 … however with a hefty interest rate they will be praying for a reversal in the spot iron ore price,” Mr K’Nell said.
Junior miner BC Iron was also stronger after its quarterly update showed a reduction in costs, with its shares adding 10.5 cents, 40 per cent, to 36.5 cents.
Gold miner Newcrest had fallen 51.5 cents, or 3.5 per cent, to $14.085 despite a rise in production and a weaker Australian dollar lifting its prices in the three months to March.
The banking and retail sectors were weaker, Telstra was down 1.5 cents at $6.235, while healthcare was stronger.
Commonwealth Bank had dropped 12 cents to $91.00, National Australian Bank was down 37 cents at $37.74, ANZ had given up 22 cents to $35.27 and Westpac was 19 cents lower at $38.10.
Woolworths had dropped seven cents to $28.19 and coles owner Wesfarmers was 17 cents weaker at $42.28.
KEY FACTS
* At 1218 AEST on Thursday, the benchmark S&P/ASX200 index was down 4.7 points, or 0.08 per cent, at 5,832.8.
* The broader All Ordinaries index was down 3.9 points, or 0.07 per cent, at 5,808.9.
* The June share price index futures contract was four points lower at 5,820, with 11,943 contracts traded.
* National turnover was 851 million securities worth $2.3 billion.
