Stocks follow copper, aluminium prices

THE Australian sharemarket closed at a five-month high yesterday after firmer commodity prices drove gains in the resources sector.

The benchmark S&P/ASX 200 Index was up 16.1 points, or 0.34per cent, at 4697.5.

City Index head of dealing Asia Pacific Michael McCarthy said strong price rises for copper and aluminium had boosted the mining sector. ‘‘The global miners are solidly higher. But it is the medium to small resource stocks that are doing particularly well,’’ Mr McCarthy said.

Advertisement: Story continues below BHP Billiton was up 45?, or 1.1per cent, at $41.45 and Rio Tinto put on 54? to $80.09. Alumina rose 4.5?, or 2.27 per cent, to $2.03.

Fortescue shares jumped after the iron ore miner announced on Sunday a new financing facility, which eased  balance sheet pressure and firmed  expansion plans. Fortescue closed 45?, or 7.76 per cent, higher at $6.25.

‘‘Companies such as PanAust, Medusa Mining and Perilya have all made spectacular gains as shorts and sceptics are squeezed,’’ Mr McCarthy said.

PanAust, a gold and copper miner, finished 8.5?, or 11.49 per cent, stronger at 82.5?. Goldminer Medusa added 42?, or 8 per cent, to $5.67; and Perilya, which last week moved to diversify beyond base metals into gold and copper, appreciated 4?, or 7.77 per cent, to 55.5?.

The spot price of gold in Sydney was at a record $US1353.05 an ounce, up $US20.36 from Friday’s local close of $US1332.69. Goldminer Newcrest rose 25? to $42.16.

Among energy stocks, Woodside rose 51?, or 1.15 per cent, to $44.94 and Santos gained 14?, or 1.1 per cent, to $12.91.

In the banking sector, CBA was steady at $51.12, ANZ was 9? higher at $24.16, NAB rose 5? to $25.80 and Westpac slipped 2? to $23.16.

Virgin Blue said last month’s  reservations computer bungle cost it between $15 million and $20 million. Its shares lost 1.5? to 45?.

Among retail stocks, Woolworths was down 50? at $29.20 after it completed a $704 million share buyback, while Coles owner Wesfarmers fell 38? to $33.62.