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Australian share market rises on stronger commodity prices


The ASX 200 index finished at a closing record of 7,180, up 1.2 per cent

The Australian share market was boosted by stronger commodity prices and a raft of good economic data from the US, including the lowest weekly new claims for unemployment benefits in 14 months.

Investors were also bolstered by reports of another multi-trillion-dollar spending plan from the Biden Administration when the US Government unveils its budget.

Iron ore prices increased 7.3 per cent to $185 a tonne as concerns eased about China’s crackdown on price speculation.

Fortescue Metals said its new Iron Bridge iron ore project could cost as much as $3.5 billion to build, nearly $1 billion more than originally estimated.

FMG shares shed 0.7 per cent to $22.12 while Rio Tinto and BHP both advanced nearly 3 per cent.

The All Ordinaries index reached a new record high during trade of 7,431 before closing at 7,424, up 1.1 percent.

The ASX 200 index neared its record high of 7,197 reached in February last year, before the  coronavirus meltdown.

It finished at a closing record of 7,180, up 1.2 per cent with nearly all sectors higher aside from tech stocks.

The Commonwealth Bank closed above $100 for the first time ever at $100.56 a share.

Doing the best on the ASX 200 were poultry producer Ingham’s which rose 8.6pc, miner South32 added 5.6pc and travel firm Corporate Travel Management gained 5.1pc.

Ingham’s increased on an upbeat earnings forecast.

Going down were building materials maker CSR which shed 5.3pc, troubled software firm Nuix lost 5.1pc after it cut ties with co-founder Tony Castagna who is being investigated by the Australian Federal Police, and iron ore miner Champion Iron declined 2.1pc.

Shareholder registry Link Administration, PEXA’s majority shareholder, climbed 5 per cent on the news that US private equity firm KKR has offered $3 billion for its majority owned online real estate platform, PEXA. Link owns nearly half of PEXA.

Domain also added 3.1 per cent after saying it would join a consortium to take a 10 per cent stake in PEXA.

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