Asciano leads ASX gains for transport, mining

The S&P/ASX 200 yesterday reached its highest level since October 8 last year, with the Australian dollar also climbing to US83.84 cents.

Shares in port and rail operator Asciano have surged 8.6% to $1.64 since Monday amid renewed confidence about its immediate future, while Toll Holdings was up 1.3% to $7.01 since Monday's close.

Takeover speculation saw shares in Arrow Energy –which hopes to build a liquefied natural gas export facility in Queensland – jump 15.8% to $4.52, its highest level since being floated nine years ago.

Arrow, which is 30% owned by Shell, said it had held talks about a possible takeover but was yet to receive an offer.

Other offshore energy groups made gains, including Santos (up 3.5%) and Woodside Petroleum (up 2.1%).

Mining heavyweights BHP Billiton (increasing 3.3% to $38.68) and Rio Tinto (ahead 7.3% to $60.74) have risen this week, although Fortescue Metals Group saw its shares drop 1.33% to $4.45.

The emerging Pilbara iron ore miner went into a trading halt this morning (see separate report).

Grain handlers Graincorp (down 3.5% to $8.43) and ABB Grain (steady at $8.94) lost momentum after the Australian Competition and Consumer Commission's initial rejection of a proposed access plan.

Wesfarmers was up 5.4% to $26.05.