CAPITAL MARKETS

Resource stocks lacklustre

ENERGY and mining stocks were in the red today after commodity prices fell overnight, though the ...

Kristie Batten

The S&P/ASX 200 index opened weaker but gradually improved through the day to close at above 5800 points for the first time since May 2008.

The index gained 0.6% or 33.6 points to 5811 points.

But it was no thanks to miners, which were in negative territory after gold, nickel and iron ore fell overnight.

BHP Billiton dropped 2% or A63c to $31.36, while Rio Tinto fell 0.9% or 53c to $60.20.

Iron ore miners were mixed after the price dropped back below $US62 per tonne overnight.

Atlas Iron was down 9.5% or A2c to 19c while BC Iron jumped 11.8% or 6.5c to 61.5c after opening lower this morning.

Fortescue Metals Group dropped 2.7% or 7c to $2.51 after it emerged that US fund Capital Research and Management Company had become a substantial holder.

CRMC bought 67.5 million shares at an average price of $2.34 since November to give it a 5% stake in FMG.

Gold miners bucked the trend, with the low Australian dollar continuing to boost stocks.

The Australian dollar was buying US77.81c this afternoon.

Perseus Mining was up 7%, while Beadell Resources gained 8%.

Windward Resources continued its positive run, closing 12.5% higher to A22.5c after geochemical and rock chip work in the Fraser Range identified nickel-copper anomalism.

Shares in Windward have now doubled over the past week.

Latin Resources rose 14.3% to 2.4c after farming out a 70% stake of its Ilo Este project in Peru to a local partner.

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