The S&P/ASX 200 (Index: ^AJXO) (ASX: XJO) has climbed around 1 per cent in afternoon trade as energy and materials businesses receive strong buyer support on the back of rebounding commodity prices. Let's take at what may be encouraging the buyer support for some of today's top movers.
Fortescue Metals Group Limited (ASX: FMG) has jumped 5.5% to a one-year high of $3.29 as the iron ore price surges above $US60 per tonne. The iron ore price has now climbed around 35% over the course of 2016 and given that Fortescue reportedly managed to reduce its cash productions costs to US$14.79 per wet metric tonne over the quarter ending March 31 2016, its margins are likely to be receiving a big boost.
Rio Tinto Limited (ASX: RIO) is another Pilbara-based iron ore miner enjoying the rising iron ore price as around 90 per cent of its earnings are iron ore related. Rio Tinto has also slashed production costs over the course of the past year and is now enjoying the fruits of its labour as the iron ore price lifts. Today the miner reported global iron ore shipments of 80.8 million tonnes for the quarter ending March 31 2016, up 11 per cent over the prior corresponding quarter. Its shares are up 3.9 per cent to $49.31 in trade today.
Woodside Petroleum Limited's (ASX: WPL) share price has lifted nearly 4 per cent to $26.78 as traders bet the oil market has found a floor after one of the steepest price falls in history. Brent crude futures trade for nearly US$43 per barrel today, despite the failure of the OPEC producing oil nations to agree a production freeze, which suggests oil markets may prove more resilient through the rest of 2016.
Yowie Group Limited (ASX: YOW) is the odd one out among today's market movers being a small-cap chocolate producer attempting to grow sales of its product in North American markets. Today its shares are up more than 11 per cent to 75 cents after the company confirmed production of its 'Angry Birds' chocolate line. Shares were sold off recently after the company got involved in a shock legal battle over custody of various chocolate manufacturing equipment in the US.
