Market ekes out gain as miners advance

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Market ekes out gain as miners advance

Australian shares eked out a second day of gains propelled by the big miners after BHP Billiton released its latest production figures.

The benchmark S&P/ASX200 index ended up 9.1 points, or 0.2 per cent, at 4412.7 points, while the broader All Ordinaries Index gained 10 points, or 0.2 per cent, to 4428.7 points.

On a sector-by-sector basis, materials was well ahead, up 1 per cent, while financials rose 0.3 per cent and energy shares lost 0.4 per cent.

What you need to know

  • The Australian dollar was buying 88.4 US cents
  • Dow futures were down 21 at 10,157 points
  • Asian stocks advance on Apple results
  • Gold futures eased to $US1189
  • Oil futures were steady above $US77.50

In late corporate news, Telstra said it planned to lop 30 managers and 300 other employees are part of cost-cutting efforts.

Gains were made across the mining sector following the release of strong production figures from global miner BHP Billiton’s latest production report.

The miner said its petroleum and iron ore divisions have both achieved annual production records.

BHP shares were up 45 cents, or 1.17 per cent, at $38.75, Rio Tinto gained $1.30, or 1.95 per cent, at $67.80 but Fortescue Metals dropped three cents to $4.10.

In other mining news, NGM Resources recommended its shareholders accept a $27 million takeover bid from African-focused uranium miner Paladin Energy.

Paladin also said it was eyeing more acquisitions.Paladin shares slipped four cents, or 1.12 per cent, at $3.54 while NGM was up 4.2 cents, or 45.16 per cent, at 13.5 cents.

Cameron Securities client adviser Adrian Leppinus said a positive night on Wall Street put the local market in a good position in morning trading.

He said gains in the materials sector came off the back of the BHP report.

''BHP's report this morning has been well received by the market and that flowed into Rio as well,'' Mr Leppinus said.

Woolies disappoints

Mr Leppinus there was disappointment in consumer staples after grocery giant Woolworths reported a disappointing fourth-quarter sales result.

‘‘The stock is down nearly two per cent, so we’ve seen a bit of slower growth, especially on the back of the reduced stimulus that was reflected in last year’s numbers,’’ he said.

Woolworths shares were down 49 cents, or 1.84 per cent, at $26.19 while Coles owner Wesfarmers was down 21 cents at $28.29.

Foster’s fell 10 cents to $5.84 and Coca-Cola shed 11 cents to $11.83.

In a late announcement, Foster's revealed its branding plans ahead of the demerger of its struggling wine division.

Among the big banks Commonwealth rose 28 cents to $51.15, Westpac gained 10 cents to $22.52 and ANZ rose 15 cents to $22.49.

NAB shares fell 20 cents to $24.20 after it said it was in discussions with global asset management and securities services company BNY Mellon to deepen the relationship, possibly in the form of a joint venture, and offer more products to clients.

Gold, most-traded stock

The price of gold at 1629 AEST was $US1,189.00 per fine ounce, up $US5.38 on Tuesday’s close of $US1,183.62.

The top-traded stock by volume was Continental Coal, after its trading halt was lifted on Wednesday, with 181.6 million shares worth $10.9 million changing hands.

Continental shares were down 0.3 cent, or 5.17 per cent, at 5.5 cents.

Preliminary market turnover at 1635 AEST was 2.24 billion shares worth $4.53 billion, with 540 stocks up, 446 down and 351 unchanged.

On the Sydney Futures Exchange, the September share price index futures contract was up 10 points to 4,392 points, with 22,122 contracts traded.

AAP, with BusinessDay

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