AU Evening Wrap: Fortescue, BHP Rally as Iron Ore Breaches $US120/t

The $S&P/ASX 200 (.XJO.AU)$ gained 32 points, or 0.5 per cent, to 7186. The All Ordinaries also rose 0.5 per cent.

Materials stocks rallied 1 per cent off the back of strong iron ore prices. $BHP Group Ltd (BHP.AU)$ rose 1.1 per cent to $44.29, $Fortescue Ltd (FMG.AU)$ 3.4 per cent to $20.26 and $Rio Tinto Ltd (RIO.AU)$ jumped 2.2 per cent to $115.85.

Uranium producers charted higher. $Paladin Energy Ltd (PDN.AU)$ jumped up 3.9 per cent to 93¢, $Deep Yellow Ltd (DYL.AU)$ gained 8.3 per cent to $1.05 and $Boss Energy Ltd (BOE.AU)$ jumped 8.8 per cent to $4.32.

Coal producers also jumped. $Yancoal Australia Ltd (YAL.AU)$ rose 2.3 per cent to $5.02, $Whitehaven Coal Ltd (WHC.AU)$ 3.4 per cent to $6.37 and $New Hope Corp Ltd (NHC.AU)$ 2.5 per cent to $6.09.

$Fletcher Building Ltd (FBU.AU)$, which traded ex-dividend as of Thursday, was among the worst performing on the benchmark, down 4.4 per cent to $4.12.

In corporate news, $Myer Holdings Ltd (MYR.AU)$ gained 1.6 per cent, after meeting its sales and profit guidance in its latest full-year report.

$Starpharma Holdings Ltd (SPL.AU)$ retreated 6.3 per cent to 15¢ after positive interim results for the company's cancer drug sent the shares up 20 per cent a day earlier.

$Downer EDI Ltd (DOW.AU)$ rose 1.4 per cent to $4.22 after securing a new contract from the Australian Defence Force valued at up to $750 million.

$Metgasco Ltd (MEL.AU)$ surged 33.3 to 1.2¢. The small-cap oil and gas explorer has commenced production from the Odin-1 gas well at its joint venture project in South Australia's Cooper Basin.