Resources Sector Rises on Commodity Price Gains

Despite a sluggish bond market, the resources sector made significant gains yesterday, driven by strong prices for base metals. All base metals recorded price increases on overseas markets, with aluminium and copper reaching four-year highs. The mining sector was particularly boosted, with the All Mining index closing 1% higher, and BHP leading the charge with a 46-cent price increase.

Key Takeaways:

• The All Resources index jumped to 1422.9, a gain of 18.3 points, due to strong commodity prices.
• Aluminium prices surged $US81 to $US1805.9 a tonne, a four-year high.
• The All Mining index closed at 1078.9, up 1% on the previous day's close, with BHP leading the charge.
• Australian Consolidated Press saw a 30-cent price increase to $4.20 on news of a proposed merger with Nine Network.
• Newcrest Mining stock rose 20 cents to finish at $7.21, despite the price of gold remaining relatively steady.

Statistics:

• Aluminium prices increased by $US81 to $US1805.9 a tonne.
• The All Resources index rose by 18.3 points to 1422.9.
• The All Mining index gained 1% to 1078.9.
• BHP's price increased by 46 cents to $20.50.
• The Australian dollar finished firmer against the US currency at 74.17 US cents, up from 73.86 US cents.

Sources:

• "Resources sector rises on commodity price gains" article in The Australian newspaper, no date provided.
• Interview with Michael Heffernan, Shaw Stockbroking, in The Australian newspaper, no date provided.
• Interview with Chris Thomas, National Australia Bank, in The Australian newspaper, no date provided.
• Interview with John Wheatley, Macquarie Bank, in The Australian newspaper, no date provided.