Metal momentum

Published in the Adelaide Advertiser, February 2010

By Rebecca Le May

THE Australian share market closed higher yesterday, led by expectations of a strong profit result by Rio Tinto and rises among the banks.

Better than expected employment data also put a sparkle into the market, brokers said.

The benchmark S&P/ASX200 index was up 40.9 points, or 0.91 per cent, at 4554.3 points and the broader All Ordinaries index rose 42.8 points, or 0.94 per cent, to 4575.8 points.

Austock securities senior client adviser Michael Heffernan said lower-than-expected unemployment figures and a stronger financial sector tipped the balance.

"The banks are galloping at the moment and Rio is also up strongly," Mr Heffernan said.

The unemployment rate fell from 5.5 per cent in December to an 11-month low of 5.3 per cent last month, defying market expectations of a rise to 5.6 per cent.

Wealth Within chief analyst Dale Gilham said he did not believe the improved jobless rate would prompt the RBA to lift interest rates next month because further signs of economic recovery were required.

"We've still got pretty average-to-poor retail figures," Mr Gilham said.

"A lot of employers over the past 12 months have cut things to the bone and now are just putting on a few more essential people and that's about it."