The ASX recovered from an early dip to add 1.01 per cent with miners leading a market rally after the iron ore price added 5 per cent overnight. The Aussie dollar also took heart from stabilizing commodity prices to spike above 88 US cents in intraday trade.
The S&P/ASX 200 index closed 52 points up to finish at 5,207.
The value of trades was $5.36 billion on volume of 998 million shares at the close of trade. The top three stocks by value were BHP Billiton Limited
(ASX:BHP), Commonwealth Bank of Australia
(ASX:CBA) and Rio Tinto Limited
(ASX:RIO)
On the futures market the SPI is 51 points higher.
Economic news
The NAB Business Survey for September has shown both business conditions and confidence are at their lowest levels in four months. NAB has now lowered their forecast of GDP growth from 2.9 per cent to 2.8 per cent for the current financial year.
Company news
Copper and gold producer OZ Minerals Limited
(ASX:OZL) says it is firmly on track to achieve its annual production forecast. The miner expects to deliver between 130,000 to 140,000 ounces of gold and between 85,000 to 90,000 tonnes of copper over the 2014 financial year. OZ Minerals has said production from its major Prominent Hill mine was strong over the September quarter and first production has been achieved at Malu Underground in October. New CEO and Managing Director Andrew Cole is expected to start with the company in December after relocating from Canada. Shares in Oz Minerals added 7.63 per cent to $3.95.
Clothing retailer Pacific Brands Limited
(ASX:PBG) is warning of a bumpy road ahead as the weaker Aussie dollar and rising costs offset an increase in sales. Flagship underwear brand Bonds is producing strong results with Sheridan Tontine also lifting sales by double digits. However the Workwear arm of the business is still reporting a loss of earnings with Pacific Brands hoping to divest Workwear to Wesfarmers for $180 million. New CEO David Bortolussi says earnings for the first half of 2015 would fall and the company was focussing on reducing net debt. Shares in Pacific Brands closed 1.14 per cent stronger at $0.45.
Orbis Gold Limited
(ASX:OBS) has rejected a cash takeover bid by Canada's Semafo Inc (TSE:SMF) saying the indicative bid of between 62 and 65 cents per share undervalued the company despite offering a 55 per cent premium.
Finbar Group Limited
(ASX:FRI) has secured a mixed use joint venture development project in East Perth valued at about $150 million.
BHP Billiton Limited
(ASX:BHP) has officially opened the Caval Ridge mine in Central Queensland.
And CuDeco Limited
(ASX:CDU) will deliver 20,000 tonnes of primary sulphide ore to Glencore’s copper processing plant for testing.
Best and worst performers
All sectors made gains, the best performing sector was materials adding 2.6 per cent to close at 9,174. The sector with the least gains was real estate investment trusts, lifting 0.1 per cent to close at 1,079 points.
The best performing stock in the S&P/ASX 200 was Mount Gibson Iron, rising 17.98 per cent to close at $0.53. Shares in Atlas Iron and BC Iron also closed higher.
The worst performing stock was Liquefied Natural Gas, dropping 7.84 per cent to close at $2.82. Shares in Wotif.com and Senex Energy also closed lower.
Commodities
Gold is trading at $US1,235 an ounce. Light crude is $0.08 lower at $US85.74 a barrel. The Australian dollar is buying 87.96US cents.
