THE sharemarket closed stronger yesterday, boosted by the resources sector, but the leading index again failed to jump an important hurdle.
The benchmark S&P/ASX200 index gained 14.6 points, or 0.3 per cent, to a three-week closing high of 4290.8 the broader All Ordinaries index was up by 16.5 points, or 0.4 per cent, at 4381.2.
Sentiment rose early in the session after comments by the managing director of the International Monetary Fund, Christine Lagarde, on Sunday that the global economy had pulled back from the brink, and that signs of stabilisation were emerging in the eurozone and the US.
After a strong start, the local market eased back from its intraday highs to less than the significant technical level of 4300 points on the S&P/ASX200 index.
"That 4300 level is a key ceiling and if the market can close above it, that would attract a few investors into the market," a private client adviser at RBS Morgans, Craig Walker, said.
A production fault on a railway at a mine owned by the Brazilian resources company Vale stimulated local iron ore stocks, Mr Walker said. "There was an issue that may affect the short-term supply of iron ore. That followed weakness on Friday due to potential cyclone activity in the west, and Fortescue and Atlas have made considerable gains."
BHP Billiton, the world's biggest mining company, gained 38?, or 1.1 per cent, to $35.35 Rio Tinto advanced 73?, or 1.1 per cent, to $65.85, while Fortescue gained 17?, or 2.9 per cent, to $5.98.
Atlas Iron soared by 11?, or 3.75 per cent, to $3.04, after the company said its mines that were affected by Cyclone Lau, which struck Western Australia at the weekend, were back in operation.
The oil majors were mixed, with Oil Search climbing 2? to $6.96 and Santos firming by 7? to $14.53, but Woodside Petroleum lost 23? to $34.97.
Among the financials, the insurers were strong, with QBE gaining 45?, or 3.4 per cent, to $13.59 before a planned capital raising, Mr Walker said.
Insurance Australia Group added 6?, or 1.8 per cent, to $3.41 and AMP advanced by 7?, or 1.7 per cent, to $4.27.
The big four banks were mostly higher with the exception of National Australia Bank, which closed 3? lower at $24.15.
Stocks that lost ground included Telstra, which was down by 3? at $3.23. Woolworths fell by 64? to $25.03 and PaperlinX fell by 4.35 per cent, to 11?.
Shares in David Jones have been placed in a trading halt as the company exercises caution about corporate disclosure rules before releasing its first-half results.
Market watchers expect the retailer to post a fall in profit of between 15 per cent and 20 per cent when it reports its latest earnings results tomorrow.
The sharemarket darling Campbell Brothers is expanding its food testing operations with acquisitions in Britain and Ireland worth $39 million.
Campbell's shares gained $1.23 to close at $63.01.
Preliminary national turnover was 2.1 billion shares worth $4.5 billion, with 560 stocks up, 488 down and 388 unchanged.
Frequently Asked Questions about this Article…
How did the ASX200 and All Ordinaries perform on the day covered in the article?
The local bourse closed stronger: the S&P/ASX 200 rose 14.6 points (about 0.3%) to a three-week closing high of 4,290.8, while the broader All Ordinaries was up 16.5 points (around 0.4%) at 4,381.2.
What is the significance of the 4,300 level on the ASX200 and why did the market struggle there?
The 4,300 mark was cited as a key technical ceiling for the ASX200. Although the market started strongly, it eased back from intraday highs and failed to close above 4,300 — a move market watchers say would likely attract more investors if breached.
Why did resource stocks drive the market higher and which miners led the gains?
Resource names rallied after supply concerns—specifically a production fault on a Vale-owned railway and earlier cyclone worries—lifted iron ore sentiment. BHP Billiton, Rio Tinto and Fortescue all advanced (with Fortescue and Atlas Iron making notable gains), and Atlas Iron soared after confirming mines affected by Cyclone Lau were back in operation.
How did Cyclone Lau and other supply issues affect mining companies like Atlas Iron and Fortescue?
Cyclone Lau initially disrupted some Western Australian mines, but Atlas Iron reported those affected operations were back online, which helped send its shares sharply higher. Separately, a production fault at a Vale railway raised short-term iron ore supply concerns, supporting other iron-ore-focused miners such as Fortescue.
What happened to the oil and gas majors on the day and which energy stocks moved?
The oil majors were mixed: Oil Search climbed to about $6.96 and Santos firmed to about $14.53, while Woodside Petroleum fell to around $34.97, showing varied investor responses across the energy sector.
How did financial and insurance stocks perform and are there notable company-specific moves?
Insurers were generally strong: QBE rose ahead of a planned capital raising (to about $13.59), Insurance Australia Group added to gains (around $3.41) and AMP advanced (about $4.27). The big four banks were mostly higher, with National Australia Bank the exception, closing lower at about $24.15.
Why were David Jones shares put into a trading halt and what do analysts expect from its upcoming results?
David Jones was placed in a trading halt as the company exercised caution over corporate disclosure rules before releasing first-half results. Market watchers expect the retailer to report a fall in profit of roughly 15–20% when it announces results.
Were there any other company announcements or market breadth signals everyday investors should note?
Yes — Campbell Brothers is expanding its food-testing business with acquisitions in Britain and Ireland worth about $39 million, and its shares rose to close near $63.01. Overall market breadth showed moderate activity with preliminary turnover around 2.1 billion shares worth about $4.5 billion, 560 stocks up, 488 down and 388 unchanged.
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