Big miners lead ASX higher at noon

Derek Rose | May 18, 2022

The Australian share market has gained ground following an overnight rally in the US after Fed chairman Jerome Powell said a “softish landing” for the world’s biggest economy was still plausible.

The benchmark S&P/ASX200 index was up 55.2 points to 7,167.7 at noon on Wednesday, a jump of 0.78 per cent. The broader All Ordinaries had gained 55.8 points, or 0.76 per cent, to 7,406.4.

In the US, Wall Street dipped initially after Powell told a financial forum “there could be some pain” as the Fed tries to tackle inflation. But the market rebounded quickly, with the S&P500 finishing near the highs of the day, up two per cent.

All sectors except consumer staples and financials were up. The heavyweight mining sector rose the most, by 2.3 per cent, as iron ore prices going higher with China moving to end its lockdowns.

BHP gained 3.1 per cent to $46.97, Rio Tinto was up 1.8 per cent to $108.64 and Fortescue Metals was up 1.0 per cent to $19.58 after announcing leadership changes.

Billionaire mining magnate Andrew Forrest will take the reins of the company he founded almost two decades ago after an extensive global search for a new leader failed to yield a better alternative.

Mr Forrest would be appointed executive chairman of Fortescue for an interim period to help drive the company’s transition when current chief executive Elizabeth Gaines exits the role in August.

Eagers Automotive fell 6.2 per per cent to a one and a half year low of $11.12 after the automotive retail group said that vehicle supply issues were cutting into its earnings. New car shipments have been impacted by semi-conductor shortages, the war in Ukraine and China’s COVID lockdowns.

Eagers said it expects to make $183 million to $189 million in profit in the half-year to June 30, compared to $214.8 million in the year before. 

AnteoTech had soared 27.7 per cent to a one-month high of 12 cents after the Queensland company’s updated COVID rapid antigen test (RAT) received regulatory approval in Europe.

The Australian dollar was buying 70.13 US cents, up from 70.11 cents at Tuesday’s close.