Who would have thought it, but the Australian share market has rebounded from yesterday’s sell-off with a remarkable rally, following on from Wall Street’s stellar close. The local bourse shot up at the open and has continued to gain momentum in the first two hours of trade, tracking 2.96 per cent higher at noon. While we have seen a sea of green across the screen, the big miners BHP and Rio Tinto have shot higher, with BHP gaining 9.5 per cent just after the open. We have also seen great gains in all of the big four banks with Westpac gaining close to 4 per cent and CBA gaining around 3 per cent.
The S&P/ASX 200 index is 153 points up at 5,309. On the futures market the SPI is 146 points higher.
Pilbara Minerals Limited (ASX:PLS) says it has signed an agreement to supply direct shipping ore to a leading Chinese lithium group. The ore will be supplied from Pilbara’s 100 per cent owned Pilgangoora Lithium-Tantalum Project in Western Australia. The agreement is for the supply of 1.9 million tonnes of lithium, however the cost per dry metric tonne has not yet been disclosed by PLS. Shares in Pilbara Minerals are trading up 10 per cent at $0.52.
Lithium Power International Limited (ASX:LPI) has gone into a trading halt pending the release of an announcement by the soon-to-be lithium producer. LPI says the announcement relates to drilling results at its Maricunga project in Chile. The company says it will release the announcement to the market, no later than next Monday. Shares in Lithium Power last traded up 17.86 at $0.33.
Best and worst performers
The best performing sector is Materials, gaining 5.3 per cent to 9,643. Shares in Bluescope Steel have risen 11.55 per cent and trading at $8.26. Shares Sims Metal Management and Western Areas are also stronger.
The worst performing sector is REITs, falling 2.29 per cent to 1,271. Shares in Stockland have fallen 3.47 per cent, trading at $4.17. Shares in Goodman Group and Scentre Group are also lower.
Gold and the dollar
Gold is trading at $US1,278 an ounce.
The Australian dollar is buying $US0.7662.