Australia’s share market is edging higher as investors look for bargains in beaten down mining stocks, against a backdrop of rising copper and gold prices.
The S&P/ASX200 rose 17.8 points by midday, up 0.2 per cent, to 8,811.2, as the broader All Ordinaries advanced by 18.9 points, or 0.21 per cent, to 8,995.8.
Industrial metals prices spiked overnight, linked to a rebound in US semiconductor stocks, however oil crept to six-week highs as the US continued to trade strikes with Iran.
“The US and Iran continued to exchange fire, marking the tenth day since attacks resumed,” Westpac economist Mantas Vanagas said.
“President (Donald) Trump played down the possibility of imminent talks with Iran to de-escalate the situation.”
Woodside, Santos and refinery operators Viva Energy and Ampol advanced as Brent crude was traded above $US92 for the first time since June 11.
Coal miners also improved, with Yancoal up more than a tenth over three sessions after its quarterly update impressed investors earlier in the week.
Uranium stocks also rallied, with Paladin up almost four per cent after its June quarter report put it on track to beat its full-year guidance in both output and sales, while undershooting forecast production costs.
The basic materials sector soared 2.4 per cent, tracking with gains in mega miners BHP and Rio Tinto as copper traded at its highest value since mid-June.
Gold miners also rallied as the precious metal rose to $US4,122 ($5,883) an ounce, breaking a downtrend that has wiped a quarter of the commodity’s value since early March, when it traded at $US5,419 an ounce.
Lynas Rare Earths has missed out on the buying frenzy, falling 6.6 per cent to $14.91 despite posting its strongest quarterly revenue in four years, after its forecast Malaysia project expansion costs blew out to $294 million from a planned $180 million.
Financials eased 0.3 per cent as the big four banks continued to come off the boil from a four-week rebound, while insurers also sold off.
Local IT stocks were under pressure after a strong performance on Tuesday, with WiseTech losing 2.8 per cent after entering an agreement to buy FRDM.ai, a developer of AI-powered logistics supply-chain risk and compliance technology.
Defensive sectors also traded lower, with communications losing 1.2 per cent, consumer staples falling one per cent, as health care stocks took a 2.1 per cent tumble.
In company news, Skycity Entertainment shares rocketed more than eight per cent higher after it announced plans to offload Auckland’s Grand Hotel.
The Australian dollar is buying 70.06 US cents, down from 70.18 Us cents on Tuesday at 5pm.
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