Resource shares keep Australian market at 2 month high
Local shares benefitted from higher commodity prices, particularly copper and nickel as resources companies, large and small registered large trading volumes on confidence about fiscal stimulis by governments, despite a lack-lustre lead from Wall Street. Pent-up demand from investors was also evident in buying patterns today with a move away from cash assets to riskier assets. Whether the market and smaller resource stocks can continue at this pace is un-certain and a divide between physical demand and supply of many commodities and share price gains seems to be evident.
The Japanese sharemarket gained for the seventh straight day, while Hong Kong fell slightly.
The S&P/ASX 200 closed up 37 points, or 1 per cent, at 3779.7, after reaching 3817.9 earlier in the day.
Miners surge in huge trade – big and small
A rebound in metal prices pushed most mining stocks higher. BHP Billiton (ASX:BHP)was up 90 cents, or 2.8%, to $32.60, Rio Tinto (ASX:RIO) rocketed $3.51, or 8.0%, to $46.93, Fortescue Metals (ASX:FMG) added 13 cents, or 6.1%, to $2.27 and Mirabela Nickel (ASX:MBN) added 30 cents, or 23.5%, to $1.60.
Gold stocks were down as gold retreated overnight, as Lihir Gold (ASX:LGL) gave up 3 cents, or 1.1%, to $2.61 and Newcrest Mining (ASX:NCM) lost $1.91 cents, or 6.0%, to $26.69.
Oil stocks were slightly higher, Santos (ASX:STO) was up 7 cents, or 0.5%, to $15.21 and Woodside Petroleum (ASX:WPL) was up 16 cents, or 0.4%, to $38.77.
Bank stocks mostly down, except Macquarie Group
Bank stocks were mostly weaker as ANZ Bank (ASX:ANZ) lost 5 cents, or 0.3%, to $15.35, Commonwealth Bank (ASX:CBA) was down 52 cents, or 1.8%, to $28.95, NAB (ASX:NAB) bucked the trend and rose 15 cents, or 0.7%, to $20.89 and Westpac (ASX:WBC)lost 16 cents, or 0.9%, to $16.87. Macquarie Group (ASX:MQG) rocketed $2.69, or 8.7%, to $33.75.
Wesfarmers (ASX:WES) jumped 5.9 per cent to $19.47.
The Australian dollar jumped to a three month high to 72.49 US cents.
Register here to be notified of Proactiveinvestors One2One Forums.
Other Australia Market Wrap articles
-
18/03/10 SocGen "moderately bullish" on commodities in a two-speed world
-
18/03/10 Myer Holdings review since listing
-
17/03/10 McEwen still positive on $2,000 gold this year - and $5,000 ahead
-
15/03/10 China's growth boosting commodity prices
-
15/03/10 Gold futures down to $1,102/oz, silver down to $17.04/oz
-
12/03/10 Circadian Technologies to present at Ultimate Healthcare & Biotechnology Event, March 24
-
12/03/10 Lithium and rare earths markets poised for growth
-
11/03/10 Tantalum market outlook
-
11/03/10 Silver price bounces back
-
10/03/10 As Confidence Returns, Gold Will Rise - Sprott's John Embry
Other Australia Market Wrap news
-
18/03/10 Stanmore Coal kicks-off drilling at Mackenzie River project in Bowen Basin
-
18/03/10 Independence Group unveils potential of Boston Shaker
-
17/03/10 China suspends tungsten, antimony and rare earth mining applications until 2011
-
17/03/10 Copper at 2-week low, $7,310/mt
-
16/03/10 Gold Anomaly plans May production commencement at Sao Chico gold project in Brazil
-
16/03/10 $1,000 gold now more floor than ceiling
-
15/03/10 Chinese coal price may rise to trade near spot, Macquarie says
-
09/03/10 MEG study finds '09 exploration budgets suffered steepest decline
-
08/03/10 Chinese coal production at low end of target
-
08/03/10 Magnesium prices still erratic