The mining sector climbed 0.7 per cent, with market heavyweights BHP (up 0.2 per cent) and Rio Tinto (up 0.9 per cent) both advancing, despite the price of iron ore sinking 1.6 per cent to $US108.05 ($165.70) a tonne. ANZ analysis, however, suggests the falling price of iron ore may be nearing a floor amid a reset in expectations around demand.

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Fortescue’s rally came after its chairman Andrew Forrest told media agency Reuters the company is looking to develop its copper assets amid a surge in the price of the metal.

Shares in real estate operator McGrath rocketed 24.6 per cent after proprietor John McGrath closed in on a deal to sell his agency to global property giant Knight Frank and Bayleys.

Under the proposed deal, McGrath shareholders will have an option to receive 60¢ cash per McGrath share, or an unlisted scrip alternative, or a combination of both.

If the plan wins shareholder approval it will spell the end of being an ASX-listed company.

The laggards

Consumer discretionary stocks (down 0.01 per cent) were the only sector trading in the red after shares in Aristocrat Leisure dipped 0.94 per cent, Lottery Corp slid 1.34 per cent, and IDP Education lost 2.11 per cent.

ALS (down 4.81 per cent) was the weakest large-cap stock after the company announced it planned to take full control of troubled European drug research business Nuvisan, and confirmed it expected its full-year profit for the financial year ending March 31 to be at the lower end of previously reported guidance.

Other weak performers were Washington H Soul Pattinson (down 1.97 per cent), Newmont (down 1.38 per cent) and EBOS (down 1.25 per cent).

The lowdown

Jonathan Tacadena, head of trading at MPC Markets, said it was a bullish day as the local bourse plays catch-up with Wall Street, which has been hitting a series of record highs.

“There’s also a lot of inflation data out this week. Even though it’s been a bullish day the market is waiting for that data,” Tacadena said.

On Wall Street, Friday, the S&P 500 Index dipped just 0.1 per cent, while the Dow Jones Industrial Average fell 0.8 per cent.

However, the technology-heavy Nasdaq Composite Index benefited from expectations that interest rates would start to fall soon, gaining 0.2 per cent.

Tweet of the day

Quote of the day

“[Wages for lowest-paid workers] have been going backwards for some time, you have to remember that when we came into office we had real wages falling at 3.5 per cent. It is important to make sure that wages keep up with inflation, particularly with the lowest-paid workers that will help contribute to some of the catch-up,” said Labor MP Andrew Charlton, who sits on federal parliament’s economics committee.

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with AP

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