Mining drives Oz shares up

Photo / Dean Purcell

The Australian sharemarket closed higher yesterday, led by gains in the mining sector.

The benchmark S&P/ASX200 index was up 9.1 points, or 0.21 per cent, at 4412.7 points, while the broader All Ordinaries index rose 10 points, or 0.23 per cent, to 4428.7 points.

On the Sydney Futures Exchange, the September share price index futures contract was up 10 points to 4392 points, with 22,122 contracts traded.

Gains were made across the mining sector after the release of strong production figures from BHP Billiton.

The miner said its petroleum and iron ore divisions have both achieved annual production records.

BHP shares were up 45c, or 1.17 per cent, at A$38.75, Rio Tinto gained A$1.30, or 1.95 per cent, at A$67.80, but Fortescue Metals dropped 3c to A$4.10.

In other mining news, NGM Resources recommended its shareholders accept a A$27 million takeover bid from African-focused uranium miner Paladin Energy.

Paladin also said it was eyeing more acquisitions.

Paladin shares slipped 4c, or 1.12 per cent, at A$3.54, while NGM was up 4.2c, or 45.16 per cent, at 13.5c.

Cameron Securities client adviser Adrian Leppinus said a positive night on Wall St put the local market in a good position yesterday morning.

He said gains in the materials sector came off the back of the BHP report.

"BHP's report this morning has been well received by the market and that flowed into Rio as well," Leppinus said yesterday.

- AAP