Australian shares end firmer after rise in mining sector

The Australian share market closed firmer, boosted by mining stocks that were driven by arise in commodity prices to 27 month highs overnight.

The benchmark S&P/ASX200 index was up 35.3 points, or 0.75 per cent, at 4,771.9 points, while the broader All Ordinaries index gained 33.3 points, or 0.69 per cent, to 4,862.5 points.

On the ASX 24, the March share price index futures contract was 43 points higher at 4,772 points, with 19,015 contracts traded.

BHP Billiton was up 60 cents, or 1.34 per cent, at $45.42, while Rio Tinto added $1.25, or 1.46 per cent, to $86.70.

Riversdale Mining entered a trading halt, pending a statement on what the Africa-focused coal miner said may be a possible control transaction, and last traded at $16.30.

Riversdale on December 12 confirmed media reports that it was in talks with Rio Tinto about a possible transaction.

Shares in Rio Tinto-majority owned Energy Resources of Australia (ERA), the world's fourth largest uranium producer, backtracked after a profit downgrade. ERA shares fell $1.22, or 9.26 per cent, to $11.95.

Shares in Giralia Resources soared after the iron ore explorer recommended an $828 million off market friendly takeover offer from Atlas Iron, a mid-tier producer of the steel-making commodity.

Giralia shares closed up $1.19, or 39.8 per cent, at $4.18 while Atlas shares eased four cents, or 1.35 per cent, to $2.92.

In other headlines, property services firm Lend Lease announced the purchase of engineering and construction business Valemus Australia for $960 million.

Lend Lease shares finished up 49 cents, or 5.93 per cent, at $8.75. Lend Lease was the best performing stock on the S&P/ASX 100 index.

The worst performer on this index was Ten Network Holdings, down 3.5 cents, or 2.44 per cent, at $1.40.

The major banks were all higher. ANZ was 42 cents firmer at $23.70, Commonwealth Bank put on 27 cents to $51.00, National Australia Bank appreciated 28 cents to $24.21 and Westpac was five cents stronger at $22.71.

Among energy stocks, Woodside was down six cents at $42.82, Santos was up 12 cents at $13.62 and Oil Search inched two cents higher at $7.05.

The spot price of gold in Sydney was $1,386.00 per fine ounce, up 52 cents from Monday's local close of $1,385.48.

Gold producer Newcrest said it was striving to reopen part of a blocked Indonesian mine where two workers were trapped and had minimised activity at a West African mine following violence after a disputed election.

Shares in Newcrest, Australia's largest gold miner, were down five cents at $40.34. The most traded stock by volume was Citadel Resource Group, which is being taken over by Equinox Resources.

More than 116 million shares in Citadel worth $59.2 million changed hands, sending the stock's price half a cent higher to 51 cents.

Preliminary national turnover was 2.31 billion shares worth $4.05 billion, with 601 stocks up, 521 down and 406 unchanged.

More from IBT Markets:

Subscribe to get this delivered to your inbox daily