CAPITAL MARKETS

ASX holds on to gains

THE local share market held steady as ongoing financial concerns in the US temporarily eased.

Lauren Barrett

The S&P/ASX 200 index extended yesterday’s gain as all sectors, bar health care, found support.

A relatively flat start for trading was met by an uptick later in the session, with the index surpassing yesterday’s close of 5275.9 points soon after midday.

At the closing bell, the index added 0.3% or 18.6 points to 5294.5 points and the broader All Ordinaries also finished 0.3% higher to 5288.2 points.

Lingering investor nervousness about the budget deficit situation in the US as well as the approaching deadline to raise the debt ceiling seemed to be put on the backburner, as punters weighed local news from the Australian Bureau of Statistics, which reported total job vacancies in August fell 3.7% from May to 137,900.

Basic materials was one of the best performing sector on the bourse, firming 0.7% as most commodities were supported by price rises overnight.

Global mining giant BHP Billiton ended the day 1% higher to $A36.35 while Rio Tinto went in the same upwards direction, picking up 1.6% to $63.39.

The gold miners were a mixed bag. Silver Lake Resources dipped 0.6% to 80c and Northern Star Resources shed 1.1% to 86c.

Beadell Resources posted its third consecutive gain, closing up 1.1% to 90.5c.

Meanwhile, AngloGold Ashanti moved 5.4% higher to $2.90 while its Tropicana joint venture partner Independence Group sagged 2.7% to $3.97.

Shares in Sandfire Resources were lower for the first time this week after the company announced it had reached terms with its financiers to reduce loan repayments for the DeGrussa mine.

Sandfire finished down 4.8% to $6.52c.

Among the juniors, Rubicon Resources travelled north 20% to 1.2c and Mount Magnet South lost 16.7% to 1c.

The Australian dollar was last trading higher at US93.79c.

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