asx rebounds as bargain hunters seek buying opportunities 1458572015

Indices and sectors

The benchmark S&P/ASX 200 on Thursday bucked its downward trend closing up 0.93 per cent at 5,662.30, while the broader All Ordinaries index was up 0.88% ending the day’s trade to close at 5,663.60.

After days of selling, the market opened higher as investors took advantage of buying opportunities. The healthcare sector was the strongest performer up more than 2 per cent.

Company news

Mining stocks reacted positively to confirmation from the Federal Government that there won’t be a parliamentary enquiry into the iron ore sector, ending a week of speculation and volatility in mining stocks.

In a brief statement on Thursday, Treasurer Joe Hockey said, “Over recent days, there has been some speculation about whether a parliamentary inquiry into the iron ore sector was necessary. After discussing the issue with regulatory bodies and stakeholders across the resources sector, the Government will not be initiating an inquiry at this time." The statement ended days of debate and acrimony from miners past and present including former BHP Chairman Don Argus.

Fortescue Metal Group Ltd's (ASX:FMG) outlook has been downgraded by Fitch from stable to negative on expectations that the iron ore price would remain low as a result of lower than expected iron ore prices. However, Fortescue shares ended 2.4 per cent higher, while Rio Tinto (ASX:RIO) and BHP Billiton (ASX:BHP) both added 1.5 per cent and South32 Ltd (ASX:S32) gained 0.4 per cent despite another fall in the iron ore price overnight.

James Hardie Industries PLC (ASX:JHX) was the best performer of the day jumping 11 per cent after it reported it had almost tripled its full-year earnings from the year prior and announced a special dividend. The market reacted positively to Woodside Petroleum Ltd’s (ASX:WPL) investor briefing where it confirmed the results of staff restructuring and cost cuts, the stock closed up 1.57% to $34.87 at market close.

Commodities and currency markets

Commodities also picked up overnight with WTI trading at $US58.91 a barrel and gold up at US$1,211.03 an ounce. The Australian dollar saw fairly steady trade throughout the day, and at close of trade was slightly higher than the day prior at 79.4 US cents.