Iron Ore fuels Rio, BHP rally: Aus shares 0.59% higher at noon

Market Reports

by Jessica Amir

The Australian share market has extended its rally from last week, opened higher and is on track another day of solid gains after the big miners are charging ahead, leading our entire market higher.

Rio Tinto (ASX:RIO) is outperforming the materials players, trading over 2.7 per cent higher after the iron ore price surged. The likes of Fortesue Metals (ASX:FMG) and BHP (ASX:BHP) and Bluescope Steel (ASX:BSL) also are charging up on the back of the commodity rally.

The S&P/ASX 200 index is 34 points up or 0.59 per cent higher at 5,849.

On the futures market the SPI is 40 points higher.

Asian markets

Japan’s Nikkei has added 0.83 per cent, Hong Kong’s Hang Seng has gained 0.06 per cent and the Shanghai Composite has lifted by 0.13 per cent.

Local economic news 

The total value of owner occupied home loans excluding alterations and additions rose 0.9 per cent in trend terms, and seasonally adjusted terms. While, personal finance increased by 0.5 per cent in August

Company news

Bendigo And Adelaide Bank (ASX:BEN) announced plans to raise $300 million through Converting Preference Shares. The bank says its issuing the fully paid, preference shares to ensure it continues to have strong regulatory capital levels, while bolstering its balance sheet growth. Shares in Bendigo And Adelaide Bank (ASX:BEN) are trading 0.94 per cent higher $11.76.

Telecommunications provider, Superloop (ASX:SLC) has completed the purchase of a wireless internet service provider, NuSkope, for $7 million in cash plus $3 million of Superloop shares. NuSkope generated $7.1 million in revenue and EBITDA of $2.4 million in FY17. Shares in Superloop (ASX:SLC) are trading 3.38 per cent higher at $2.45.

Boart Longyear’s (ASX:BLY) company secretary and general counsel, and senior vice president, Fabrizio Rasetti will be leaving the group at the end of the year (31 December 2017). He has been with the drilling services company since 2006. Kari Plaster a previous Rio Tinto (ASX:RIO) employee will also replace the outgoing vice president of human resources.

Best and worst performers

The best performing sector is materials, gaining 1.43 per cent to 10,653. Shares in Galaxy Resources (ASX:GXY) have risen 6.06 per cent and trading at $3.50. Shares in Sims Metal Management (ASX:SGM) and Evolution Mining (ASX:EVN) are also stronger.

The least gaining sector is healthcare, adding 0.09 per cent to 23,566. Shares in Sirtex Medical Limited (ASX:SRTX) have fallen 3.9 per cent, trading at $14.54. Shares in Mayne Pharma Group Limited (ASX:MYX) and Primary Health Care Limited (ASX:PRY) are also lower.
 
Commodities and the dollar

Gold is trading at $US1,302 an ounce and one Australian dollar is buying 78.74 US cents. 

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.