Australian Uemployment Rises to 5.3%; Stocks Trim Gains

Marcus Jacob
08 Sep, 2011
New York City

Australian stocks gained for the second day in a row and unemployment in August rose 5.3% from 5.1% in July. The surprise increase in the rate put investors on the defensive. Unemployment in Western Australia increased to 4.4% from 4%.

[R]4:30 PM Sydney – Australian stocks gained for the second day in a row and unemployment in August rose 5.3% from 5.1% in July. The surprise increase in the rate put investors on the defensive. Unemployment in Western Australia increased to 4.4% from 4%.[/R]

The ASX 200 index added 4.60 or 0.1% to 4,188.4 and All Ordinaries index added 6.9 or 0.2% to 4,269.8.

The Australian dollar closed up 0.03% to US$1.063 and gold price decreased $3.04 to US$1,840.77.

In trading, turnover increased to 2.36 billion shares and the trading value fell to $5.04 billion with 603 stocks gained, 417 declined and 341 were unchanged.

Unemployment in August increased to 5.3% from 5.1% in July according to the latest data released by the Australian Bureau of Statistics.

The latest unemployment data suggested uneven economic recovery and lingering effects of the weather related problems in March.

The unemployment rate in Western Australia increased to 4.4% from 4% in July and in Queensland rose to 6.2% from 5.7% in July. The increase in unemployment in Western Australia surprised the market.

Just a day ago the statistics agency reported Australia’s gross domestic product increased 1.2% in the second quarter from the first and advanced 1.4% from a year ago quarter.

Stock Movers

BHP Billiton Ltd decreased 6 cents to $38.17 and Rio Tinto added $0.70 to $71.30.

Rio Tinto and Chinalco Yunan are exploring a joint venture in a copper mining project Chile with copper and molybdenum deposits.

Atlas Iron fell 4 cents to $3.70 and the company announced its plan to acquire FerrAus in all stock transaction for $240 million. FerrAus decreased 1 cent to 92 cents.

Leighton Holdings increased 53 cents to $19.13.

Oil Search increased 12 cents to $6.14 and Santos added 6 cents to $11.56.

Commonwealth Bank of Australia decreased $0.27 to $47.22 and National Australia Bank added 27 cents to $23.21. ANZ declined 11 cents to $19.92. Westpac gained 2 cents to $20.09.

Macquarie Group decreased 33 cents to $23.20.

Wesfarmers fell 6 cents to $30.51.