Sector movers: Rio leads mining rally

5th Jun 2009 13:45

The mining sector is posting big gains after investors gave the thumbs up to Rio Tinto's decision to scrap its controversial $19.5bn refinancing deal with Chinese firm Chinalco. Rio has instead launched a $15.2bn rights issue and a merger of its West Australia iron ore assets with those of bitter rival BHP Billiton.Institutional investors angry at the Chinalco agreement welcomed the decision, though it raises questions on the future of chief executive Tom Albanese, who was a strong backer of the Chinalco plan. Shares in BHP are also sharply higher, as are those of other big mining companies, helped by higher metals prices on the back of optimism the global recession is easing.With investors upbeat on economic prospects, there is little demand for household goods stocks such as Reckitt Benckiser, the company behind Vanish stain remover and French's mustard.Top performing sectors so far todayMining 16,059.90 +8.80%General Financial 4,441.65 +4.34%Forestry & Paper 2,412.78 +3.94%Technology Hardware & Equipment 249.67 +2.74%Life Insurance 3,094.96 +2.54%Bottom performing sectors so far todayPersonal Goods 7,279.42 -0.18%Household Goods 5,422.64 -0.15%