Eye on ore: Aus shares 0.43% higher at noon

Despite a flat lead from Wall Street, it has been a positive start to the session for the Australian share market thanks to a jump in the price of commodities overnight. At noon, the ASX200 is 0.43 per cent higher. The Materials sector is leading the charge after the price of Iron Ore surged past the US$80 a tonne mark, despite forecasts the commodity’s price would decline this year. The mining giants BHP and Rio Tinto have surged ahead, gaining between 3.5 and 4.5 per cent. We’ve also seen the gold stocks continue to rally, as the price of the precious metal edges its way back up.

The S&P/ASX 200 index is 22 points up at 5,783. On the futures market the SPI is 27 points higher.

Company news

BHP Billiton Limited (ASX:BHP) chief executives have held talks in the US with President –Elect Donald Trump. It is understood that CEO Andrew Mackenzie and chairman Jac Nasser focussed their conversation on the global economy and the outlook for the resources sector. This comes as iron ore continues to rally, following pledges by China that it would be cutting output in some provinces. Shares in BHP are trading up 3.13 per cent at $26.16.

Yowie Group Limited (ASX:YOW) has announced the results of its US pre-holiday 2016 marketing campaign. The chocolate manufacturer says it aired a 30 second television commercial, as well as advertised on buses. Yowie says it achieved 5.3 million broadcast impressions, 2.1 million over targeted delivery. Shares in Yowie are trading down 1.59 per cent at $0.62.

Best and worst performers

The best performing sector is Materials, gaining 2.3 per cent to 10,111. Shares in Sandfire Resources (ASX:SFR) have risen 5.73 per cent and trading at $6.27. Shares in Sims Metal Management (ASX:SGM) and Bluescope Steel (ASX:BSL) are also stronger.

The worst performing sector is REITs, falling 0.3 per cent to 1,390. Shares in Growthpoint Properties (ASX:GOZ) have fallen 1.51 per cent, trading at $3.27. Shares in Vicinity Centres (ASX:VCX) and SCA Property Group (ASX:SCP) are also lower.

IPOs

LifeSpot Health Limited (ASX:LSH) started trading today. The mobile application company floated with an issue price of $0.20, opened at $0.40 and is currently trading at $0.37.

Gold and the dollar

Gold is trading at $US1,188 an ounce.
The Australian dollar is buying $US0.7363.