Wall Street closed higher after US economic data suggested matters aren’t as bad as they could be, pointing to a stronger private sector job market and improved worker productivity.
The US market is now focused on an announcement from President George W. Bush tomorrow about what the Government can do to aid those struggling under the sub-prime mortgage crisis.
This boosted the wider Australian market, with the All Ordinaries gaining 1.4% to 6660.5 points, and the S&P-ASX 200 also rising 1.4% to 6600.9 points.
Given this, the Australian resources sector roundly ignored a mixed session across base metals on the London Metal Exchange – which saw nickel wallow further but copper firm – and instead decided to have a positive day instead.
Leading the way was junior play Coziron Resources, which rose 37.5% or 4.5c to 16.5c, representing the biggest mover in percentages.
In dollar terms, Fortescue Metals Group gained the most overall, closing the day at $56.20, up $1.19 or 2%.
Rio Tinto, meanwhile, closed at $144.74, up 92c, despite Baosteel emphatically dismissing any talk of a competing takeover bid.
BHP Billiton, which is still yet to make a real offer for Rio, gained 68c to $43.38.
Also ripping up the bourse was African copper play Equinox Minerals, which received a stoplight from the Australian Securities Exchange after its shares soared as high as $5.80 on the back of takeover talk and “mystery buying”.
As flagged in MiningNews.net, Oxiana has been fingered as a potential buyer for the emerging miner, but talk has turned to highly acquisitive Xstrata, or Toronto and New York-listed Lundin Mining.
Another Canadian play, First Quantum Minerals, has also been suggested as an interested buyer.
So far, Equinox has denied having any knowledge of who could be buying up its shares or of any takeover offers, and chief executive officer Craig Williams has told MNn that he is committed to bringing the company’s flagship project, the Lumwana copper mine, into production under Equinox.
Shares in the company ended the day up 75c or 15.5% to $5.59.
Another player in another takeover game, Midwest Corp, has also received a hefty boost on the back of slightly firmer acquisition talk. The company announced today that it was in discussions with interested parties that are not Murchison Metals.
Midwest has not revealed exactly who it is having discussions with, but many market watchers are flagging Chinese company Sinosteel as a likely buyer.
Shares in the company closed up 53c or more than 12% to $4.75.
Meanwhile, Murchison has launched another volley in the war with an updated resource, but its shares closed the day down 18c or over 4% to $3.80.
