PERTH: The Australian sharemarket rallied today after a strong bounce in the iron ore price helped drive mining stocks higher, potentially paving the way for another charge towards the 6000 mark.
At the 4.15pm (AEST) official market close, the benchmark S&P/ASX200 index was up 49.4 points, or 0.83 per cent, at 5982.7, while the broader All Ordinaries index was up 48 points, or 0.81 per cent, to 5954.8.
The local market received a boost from higher commodity prices with a focus on the rebound in iron ore, CMC Markets sales trader Tony Kwok said.
The iron ore price is sitting at a six-week high with the commodity enjoying its best run in a bear market that has lasted close to 18 months.
The commodity has seen a 15 per cent rise in the past week alone.
“The materials and energy sectors are driving the market higher towards the key 6000 resistance as it bubbled up to within 20 points of the mark just after midday,” Mr Kwok said.
The benchmark index moved to break the 6000 level earlier this month and in March, but pulled back after surprise interest rate holds from the Reserve Bank of Australia.
IG chief market strategist, Chris Weston, said next week’s Reserve Bank meeting is in the forefront of trader’s minds with the market now placing a 51 per cent probability of a May rate cut.
“Surely the bulls will have the energy and impetus to break the 6000 ceiling this time around,” he said.
