Mining and energy stocks have surged after one of Australia’s major iron ore rivals cuts its production expectations.
Mining and energy stocks have surged after one of Australia’s major iron ore rivals cut its production expectations, lifting the sharemarket to a five-day high.
The benchmark S&P/ASX200 index ended the session up 0.4 per cent, or 25 points, to 6615, off the back of strong gains among commodity and energy stocks.
The broader All Ordinaries index finished up 0.5 per cent, or 36 points to 6847.3, while the Australian dollar was down 0.1 per cent to 74.08 US cents at the end of the session.
Stock rises from major miners came off the back of a Brazilian rival Vale warning of lower iron ore production levels, despite Chinese demand for the commodity remaining strong.
Investment analysts at Macquarie said demand by China for iron ore was expected to remain strong.
“China imported 106.7 megatonnes of iron ore in October (up 15 per cent year-on-year), taking year-to-date imports to 975 megatonnes, 11 per cent higher year on year,” Macquarie said in a statement.
Fortescue Metals experienced the biggest daily lift with its shares surging 13.3 per cent to $20.85 at the close.
Medical company Mesoblast witnessed the largest plunge, failing 3.8 per cent to $4.86.
Other major mining stocks lifted with the market, with Rio Tinto rising 6.9 per cent to $112.2 per share, while its rival BHP jumped 4.9 per cent to $41.25 per share. Whitehaven Coal shares rose 8.8 per cent to $1.49 each.
The big four banks all ended the day lower. Commonwealth Bank stock dipped 0.7 per cent to $79.56 per share, while the other major Sydney-based bank Westpac ended the session down 0.5 per cent to $20.20 per share.
ANZ fell 0.1 per cent to $23.01 per share and shares in NAB also finished down 0.1 per cent to $22.97 each.
Stock in Qantas fell 1.1 per cent to $5.49 per share after a trading update confirmed international travel would likely not resume until at least the middle of next year.
Telstra shares tumbled 0.7 per cent to $3.03 each.
Woolworths ended the day unchanged at $37.84, while its main rival Wesfarmers rose 1 per cent to $49.76 per share.