CAPITAL MARKETS

Market rebounds

AUSTRALIAN stocks recovered today on strong overseas leads.

Justin Niessner

Investors responded warmly to overnight comments from the US Federal Reserve vice-chair suggesting that stimulus tapering plans will remain on hold.

The S&P/ASX 200 index was 0.7% higher at 5355 points.

The recovery included positive momentum from most sectors, with basic materials gaining 0.6% on the session.

The majors ticked higher, with BHP Billiton gaining 0.5% to $A37.82 and Rio Tinto closing 0.8% higher at $65.13.

However, mining investors and analysts appeared to be left searching for leads in reports on a three-day Chinese congressional session which released its results last night in Beijing.

A lack of reference to infrastructure and housing investment initiatives was particularly noticeable in the iron ore sector, where companies turned in a mostly positive performance on the ASX but minimal price movements left the commodity last trading at $US136.10 per tonne.

Standouts in iron ore included Australasian Resources (up 15.4% to A6c), Legacy Iron (up 10.5% to 4.2c) and Tawana Resources (up 12.5% to 3.6c).

Fortescue Metals Group was up 0.9% to $5.82 while Mount Gibson Iron gained 5.4% to $1.08.

Unsurprisingly, gold was more sensitive commodity to Yellen’s comments, recovering 0.6% overnight in value and last trading at $US1286 per ounce.

Sector leader Newcrest Mining climbed 0.8% to $A9.55, followed by substantial gains from Northern Star Resources, Perseus Mining, St Barbara and Beadell Resources.

Mali-focused Papillon Resources, meanwhile, bounced 7.6% to close at $1.13 while Regis Resources improved 1.9% to $3.26.

The Australian dollar was last trading at US93.52c.

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