The Australian share market has closed higher after a bounce in the iron ore price.
With the Chinese port iron ore price up by $US2 to $US52 a tonne overnight and a jump in international oil prices, key mining and energy stocks were the clear winners locally on Thursday, Patersons Securities investment analyst Ishan Dan said.
“It looks like iron ore has been the story of the day with the big miners leading the market and gains across all sectors,” he said.
Mr Dan said gains in US stocks on Wednesday after the Federal Reserve left the door open for its first interest rate increase in almost a decade would have boosted the Australian market in early trade.
“We think the Federal Reserve will raise rates and that will lead to a lowering of the Aussie dollar.”
Mr Dan said the domestic profit reporting season, which begins in earnest next week, will be the next major focus for the ASX.
“Next week really is the big week, so our market will be gearing up for reporting season.”
In the resources sector, BHP Billiton rose 61 cents to $26.50, Rio Tinto added $1.22 at $53 and Fortescue Metals Group rose 1.5 cents to $1.895.
In a good day for key energy stocks, Woodside Petroleum was up 73 cents at $35.68 and Santos added 30 cents to $7.43.
The big four banks all ended higher, with Commonwealth Bank up 48 cents at $87.08, ANZ up 22 cents to $32.47, NAB rising 39 cents at $34.56 and Westpac up 34 cents to $34.74.
In company news, Sunbeam’s parent company GUD Holdings rose 92 cents to $9.38 after announcing a surge in Sunbeam kitchen appliance sales in the second half of 2014/15.
KEY FACTS
* On Thursday, the benchmark S&P/ASX200 index was up 45.3 points, or 0.81 per cent, at 5,669.5.
* The broader All Ordinaries index was up 43.5 points, or 0.78 per cent, at 5,653.1.
* The September share price index futures contract was 34 points higher at 5,607 at 1616 AEST, with 21,066 contracts traded.
* The price of gold in Sydney at 1700 AEST was $US1,085.30 per fine ounce, down $12.20 on Wednesday’s price of $US1,097.50.
* National turnover was 1.82 billion securities worth $4.75 billion.
