The Australian share market continues to seesaw from one day to the next with the All Ordinaries Index (XAO) wiping out part of the 3pct falls we saw yesterday. On a positive note, the market does seem to be holding up above the 4300pt mark. XAO gained 1.03pct or 44.1pts to 4330.4 today with the miners and energy players leading the rise.

The mining sector gained by more than 2.5pct with iron ore producer, Fortescue Metals (FMG) gaining 9.88pct or 34cents to $3.78 after their horrid week on the market, falling almost 20pct over the last fortnight. Australia抯 second largest miner, RIO Tinto (RIO) rose 3.65pct or $2.25 to $63.95 after holding their Annual General Meeting in Melbourne today. RIO said the proposed super profits tax has the potential to destroy Australia抯 reputation in the global community. RIO went on to say that they are very keen to work with the federal government to implement the right policy outcomes. The larger BHP Billiton (BHP) gained 2.7pct or 98cents to $37.26.

A consortium of mining companies announced a $4.85 billion bid for Queensland抯 coal rail track network which is currently owned by the State Government. Both BHP and RIO are part of the consortium. The offer specifically covers tracks used by coal businesses.

The airlines made up some ground after falling significantly yesterday partly due to increased tension between South and North Korea. Qantas (QAN) rose 1.28pct or 3cents to $2.37 whilst Virgin Blue (VBA) gained 1.18pct or 43cents. Yesterday, QAN fell 4.49pct and VBA fell 6.59pct.

Our banks were mixed today with both ANZ Banking Group (ANZ) and Commonwealth Bank of Australia (CBA) finishing higher, however Westpac (WBC) and National Australia Bank (NAB) both eased.

On the economic front, Australia抯 construction figures were released. Construction work done in the March quarter (i.e the first three months of the 2010 calendar year) rose by 1.9pct to a record high. The figures were led higher by a strong increase in public sector construction. Commsec Economist, Savanth Sebastian said that 揟he public sector has certainly played a major part in propelling the Australian economy forward. Spending by state and federal governments allowed Australian businesses to keep their head above water throughout the
slowdown. In fact private sector construction activity has fallen for the third straight quarter, while public sector activity surged by over 36 per cent in annual terms.?

Whilst discussing the possibility of rate hikes, Mr Sebastian went on to say that 揟he Reserve Bank will monitor the buoyant construction sector very closely. The major worry is that demand for labour and resources will lead to higher costs, boosting inflation across the economy. And there are early signs of cost pressures in the construction space. Construction costs have posted back to back quarterly increases; however given that costs are still down on a year ago it would not at present concern the Reserve Bank.?

The Australian dollar (AUD) has risen compared to this time yesterday and is currently at US82.46cents.

Volume traded has come in the highest for the week so far with 2.4 billion shares traded, worth $7.49 billion. 535 stocks were up, 534 were down and 340 remained unchanged.

At 4.30pm AEDT on the Sydney Futures Exchange, the Share Price Index futures contract (SPI) is up 0.61pct or 26pts to 4300.

Dow Jones futures are pointing to a slightly stronger start with US markets currently expected to open about 0.15pct stronger at 11.30pm AEST tonight.. In the US data on durable goods and new home sales are released.