Steel pipes resources stocks push market up
According to thickness
The Australian share market finished stronger, boosted by the resources sector with iron ore players Fortescue Metals Group and Atlas Iron the standouts.
At the close on Monday, the benchmark S&P/ASX200 index was up 14.6 points, or 0.34 per cent, at 4,290.8, while the broader All Ordinaries index was up 16.5 points, or 0.38 per cent, at 4,381.2.
The June share price futures index contract was 28 points stronger at 4,313 with 25,565 contracts traded.
After a strong start, the local market eased back from its intraday highs and back below the key technical level of 4,300 points on the S&P/ASX200 index, RBS Morgans private client adviser Craig Walker said.
"That 4,300 level is a key ceiling, and if the market can close above it that would attract a few investors into the market," he said.
A production fault on a railway at a mine owned by Brazilian resources giant Vale boosted local iron ore stocks on Monday, Mr Walker said.
"There was an issue that may affect the short-term supply of iron ore.
"That followed weakness on Friday due to potential cyclone activity in the west, and Fortescue and Atlas have made considerable gains."
Fortescue Metals Group surged 17 cents, or 2.93 per cent, to $5.98, while Atlas Iron jumped 11 cents, or 3.75 per cent, to $3.04.
BHP Billiton, the world's biggest mining company, gained 38 cents, or 1.09 per cent, to $35.35, and Rio Tinto advanced 73 cents, or 1.12 per cent, to $65.85.
Oil majors were mixed, with Oil Search climbing two cents to $6.96, Santos firming seven cents to $14.53, but Woodside Petroleum slipping 23 cents to $34.97.
Among financials, insurers were strong, with QBE Insurance jumping 45 cents, or 3.42 per cent, to $13.59 ahead of its planned capital raising, Mr Walker said.
Insurance Australia Group added six cents, or 1.79 per cent, to $3.41 and AMP advanced seven cents, or 1.67 per cent, to $4.27.
The big four banks were mostly higher with the exception of National Australia Bank, which closed three cents lower at $24.15.
Stocks that lost ground included Telstra, which was down three cents at $3.23. Woolworths fell 64 cents to $25.03 and PaperlinX plunged 0.5 cents, or 4.35 per cent, to 11 cents.
David Jones shares have been placed in a trading halt as the department store chain exercises caution about corporate disclosure rules before releasing its first half results.
Market watchers expect the upmarket retail chain to post a 15 to 20 per cent fall in net profit when it reports its latest earnings results on Wednesday.
In other news, share market darling Campbell Brothers is expanding its food testing operations with a $39 million acquisition in the United Kingdom and Ireland.
Campbell's shares gained $1.23 to $63.01.
The price of gold in Sydney closed at $US1661.57 per fine ounce, up 49 US cents from $US1661.08 on Friday.
National turnover was 2.13 billion shares worth $4.53 billion, with 546 stocks up, 471 down and 379 unchanged.
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