logo-loader
viewProactive Investors Australia

Mining stocks benefit from weaker Australian dollar

au_australiancash350_518c71e8344b3.jpg

The miners led a rally on the ASX today as investors took advantage of a weakening Australia dollar against the greenback.

By 1.41pm the broader All Ordinaries had gained 17.3 points, or 0.3%, to 5,197.9 points and the benchmark S&P/ASX 200 had climbed 15.9 points, or 0.3%, to 5,214.3 points.

The Australian dollar fell to an 11-month low of 100.47 U.S. cents early today. It has since recovered to around 100.87 U.S. cents. 

RBS Morgans senior equities adviser Tony Russell said the weakening Australian dollar helped the resources giants overcome a drop in key commodity prices.

‘‘Because the resource companies are major exporters, trading in US dollars, when they convert that back to the Aussie (dollar) it’s getting better,’’ he told AAP.

The larger Materials sector was 95.3 points, or 1%, better off at 9,791.5 points.

Rio Tinto (ASX: RIO) and BHP Billiton (ASX: BHP) were among the top dollar gainers with increases of $0.63, or 1.1%, and $0.32, or 0.9%, respectively.

Rio reached $58.83, while BHP moved to $34.86.

Fellow iron ore play Fortescue Metals Group (ASX: FMG) added $0.03, or 0.9%, rising to $3.95.

There was a shift away from the gold miners, with Newcrest Mining (ASX: NCM) registering a $0.29, or 1.6%, fall to $17.32, while Northern Star (ASX: NST) slipped $0.02, or 2.9%, to $0.83.

Resolute Mining (ASX: RSG) dropped $0.03, or 3.8%, to $0.88.

The broader Financials sector found itself in the red, shedding 28.3 points, or 0.5%, to hit 5,750.1 points.

The big four all marked a downward shift, with ANZ (ASX: ANZ) $0.57, or 1.9%, weaker at $30.02 despite passing on more than the Reserve Bank of Australia’s cut in interest rate.

ANZ reduced its mortgage rate by 0.27 percentage points, compared to the RBA’s cut of 0.25 percentage points.

The Commonwealth Bank of Australia (ASX: CBA) $0.55, or 0.8%, lower at $70.49, while National Australia Bank (ASX: NAB) dropped $0.39, or 1.2%, to $32.29 and Westpac Banking Corporation (ASX: WBC) wiped off $0.31, or 0.9%, to $33.04.


Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

Quick facts: Proactive Investors Australia

Price: - -

ASX:.
Market: ASX
Market Cap: -
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Jindalee Resources announces maiden lithium resource at McDermitt Lithium...

Jindalee Resources Limited (ASX:JRL) managing director Pip Darvall speaks to Proactive about the estimation of a maiden inferred mineral resource at its 100%-owned McDermitt Lithium Project in the US and what it means for the project. The resource is 155 million tonnes at 2,000ppm lithium for...

9 hours, 4 minutes ago

2 min read