Australian Dollar Higher, Unemployment Drops to 5.2%

Marcus Jacob
13 Oct, 2011
New York City

Australian stocks resumed the advance after the release of jobs data. The unemployment rate in September decreased to 5.2% from 5.3% in August. Rio Tinto said quarterly production of iron ore and coking coal increased but copper and alumina output fell.

[R]6:00 PM Sydney – Australian stocks resumed the advance after the release of jobs data. The unemployment rate in September decreased to 5.2% from 5.3% in August. Rio Tinto said quarterly production of iron ore and coking coal increased but copper and alumina output fell.[/R]

Australian stocks gained after the release of better than expected jobs data and higher production target set by the second largest miner Rio Tinto.

Unemployment rate in September decreased to 5.2% in September from 5.3% in August according to the latest data released by the Australian Bureau of Statistics.

The number of employed increased 20,400 and full-time workers increased 10,800.

The Australian dollar increased after the release of the data and traded at intra-day high of US$1.023.

The ASX 200 index increased 40.2 or 1% to 4,244.5 and All Ordinaries index added 39.6 or 0.9% to 4,306.10.

The Australian dollar fell 0.1% to US$1.04 and gold increased US$9.35 to US$1,676.25.

In trading, 1.96 billion shares changed hands worth $5.68 billion and of the 10 shares traded seven fell and two rose.

Stock Movers

BHP Billiton Ltd increased $0.56 to $37.64 and the miner approved the allocation of $1.2 billion in pre-commitment capital to expand the first phase of the Olympic Dam project in South Australia. The company is also expected to invest as much as $20 billion in the project over the next ten years.

Rio Tinto Ltd increased $1.88 to $69.34 and the second largest miner said in the September quarter production increased 5% to 50 million tons and sales rose to 60 million tons.

Production of coking coal increased 14% to 2.8 million tons. Aluminum production increased 2% and alumina output decreased 5%. However, thermal coal output declined 3% and copper production slumped 32% on the lower recovery at it mines in the US and Chilean joint venture operated by BHP Billiton.

The company kept its yearly outlook for iron ore at 240 million tons and coking coal at 8 million tons but lowered the copper production to 522,000 tons from the previous estimate of 539,000 tons.

Iluka Resources soared 9.6% to $16.99 after the company increased its production in the September quarter by 10% and business fundamentals remain strong.

Fortescue Metals decreased 34 cents to $5.06 and a day ago the iron ore miner said it increased its reserves at the Nyidinghu deposit by 980 million tons.

Linc Energy gained 3 cents to $2.10 and the company said it has finalized the purchase of oil field from ERG Resources for $236 million.

Energy Resources Australia closed unchanged at $3.29 after the uranium miner announced a plan to raise $500 million in an offering that valued the company at $1.53 a share.

Oil Search Limited increased 3 cents to $5.98, Santos Limited added 31 cents to $12.80 and Woodside Petroleum added 14 cents to $35.50.

Commonwealth Bank of Australia closed up $0.12 to $47.58 and National Australia Bank added 14 cents to $24.34. ANZ edged up $0.02 to $21.10. Westpac increased $0.12 to $21.75.

David Jones Limited closed down 1 cent to $2.99 and Wesfarmers increased $0.18 to $31.79.

JB Hi-Fi closed up 52 cents to $14.88 and a day ago the company guided weaker comparable sales in the quarter ending in September.

Woolworths Limited decreased 27 cents to $24.65 and James Hardie Industries SE rose 7 cents to $5.74. Treasury Wine Estate declined 2 cents to $3.81.

Tabcorp Holdings increased 2 cents to $2.73 after it said first quarter revenues increased 2.7% to $759.4 million.

Stockland rose 6 cent to $3.08 and Westfield Group added 5 cents to $7.65.

Qantas increased 1 cent to $1.57 and airline continues to suffer from an ongoing strike from baggage handlers, engineers and mechanics. The airline was forced to ground 10 flights and cancel 100 flights today.

Virgin Blue gained 1 cent to 33 cents and the competition regulator said it is likely to approve the airline’s partnership with Singapore Airlines.