BHP, Fortescue lead Australian share market up 0.9pc

Allison Jackson | March 05, 2009

MINERS and energy producers pushed stocks higher today on hopes China will step up efforts to revive economic growth.

After big gains in US and European markets, the S&P/ASX 200 rose 29.9 points, or 0.9 per cent, to 3196.3 in the first 15 minutes of trading, snapping a four-day losing streak.

The All Ordinaries rose 29.3 points to 3155.2.

China is expected to announce another stimulus package at the annual meeting of the National People’s Congress starting in Beijing today.

Investors are betting the money will be poured into building new roads, bridges and other infrastructure and lead to increased demand for Australian iron ore, coal and other commodities.

BHP Billiton led the gains, rising 6.5 per cent to $28.89, while its smaller rivals Rio Tinto and Fortescue Metals Group piled on 5.6 per cent and 6 per cent respectively.

Woodside Petroleum gained 2.3 per cent to $34.47 and Santos rose 2.1 per cent $14.78.

Gold miners took a big hit after the gold price fell as rising equity markets calmed anxious investors who had been seeking shelter in the precious metal.

Lihir Gold slumped 7.6 per cent to $3.06 and Newcrest lost 3 per cent to $30.46.

The gains came as the Australian Securities and Investment Commission extended its ban on short selling financial stocks until May 31, citing the volatility in global financial markets.

"In making its judgement to again extend the ban, ASIC weighed up the continued volatility in global financial markets and potential damage from aggressive or predatory practices from short selling against the possible loss of some market efficiency or price discovery," ASIC said.

Shares of investment bank Macquarie Group were up 0.8 per cent at $18.05.


Article from: The Australian