Resource stocks and the broader local market decided to follow the lead of Wall Street where its Dow Jones index closed up 2.5% as hopes were raised by the US Federal Reserve’s interest rate cut.
The S&P-ASX 200 closed up 3.1% to 5580.4 points while the All Ordinaries finished at 5605.8 – a gain of 160.2pts or 2.9%.
Weaker base metals, which decided to follow the lower equity markets across Europe, wasn’t enough to weigh down resource stocks with most chalking up gains and rebounding from the 12-day slump.
Meanwhile some stocks were tied to the investor reception of their respective quarterlies, with Newcrest Mining hit hard early after it downgraded the openpit gold production guidance at its troublesome Telfer mine and warned of rising cost pressures.
Investors didn’t take too kindly to the not-so-good news out of Telfer, wiping off just over 6% off Newcrest’s share price earlier in the session to an intraday low of $32.80 before closing at $34 – a fall of 90c or 2.6%.
A strong production performance from Zinifex saw the miner’s shares close at a week-rolling high of $9.88 – a climb of 94c or 10.5%.
Zinc production was up slightly on the previous quarter while lead production was up nearly 30%. Also adding to Zinifex’s favour was its $A2 billion war chest which has become increasingly valuable in the volatile market climate.
Shares in Sino Gold ended the day down despite a 128% increase in the miner’s gold production over the December quarter to 32,186oz.
It was a happening quarter for the China-focused miner, which swallowed up Golden China, received approval from the Chinese Government to begin development at its White Mountain project and marked its first acquisition under its Sino Gold Fields Alliance banner.
Shares in Sino closed down 13c (1.7%) to $7.37.
Other companies to issue quarterlies today included Pan Australian Resources, up 8.2% to 86c, Straits Resources shed 2.2% to $5.38, Dominion Mining added 14.5% to $4.58 and Intrepid Mines dipped 3.6% to 27c.
A notable mover of the day was Midwest which jumped $1.34 or 33.8% to $5.30 on news that predator Murchison Metals had extended its takeover offer period.
Wolf Minerals added 37c (28.9%) to $1.65 on news that it would pocket around $US85 million each year once it brings its Hemerdon tin-tungsten project online and Intermet Resources firmed 3.5c (20.6%) to 20.5c on rock chip samples from its Percy West prospect that returned gold values of up to 608 grams per tonne.
