Australian Stocks Lower; Orica Up, Comutershare Surges

Marcus Jacob
07 Nov, 2011
New York City

Australian stocks edged lower after a leading jobs market indicator showed a weakness in new employment ads. Orica, the explosive maker gained after it reported 4% increase in annual earnings. Computershare surged after it won the U.S. regulatory approval.

[R]6:00 PM Sydney – Australian stocks edged lower after a leading jobs market indicator showed a weakness in new employment ads. Orica, the explosive maker gained after it reported 4% increase in annual earnings. Computershare surged after it won the U.S. regulatory approval.[/R]

Stocks in Sydney trading declined and a private survey of leading job market indicated softness in the months ahead.

The ANZ jobs ad index that tracks ad placement in print and online declined 0.7% in October to 181,500 after a revised declined of 2.2% in September.

Newspaper ads declined 2.7% from September to a seasonally adjusted 7,855 and dropped 16.7% from a year ago.

Internet jobs ads declined 0.6% to 173,150 and fell 2.8% from a year ago.

The ASX 200 index fell 7.7 or 0.2% to 4,273.4 and All Ordinaries index decreased 0.2% or 7.2 to 4,335.30.

The Australian dollar fell 0.2% to US$1.036.

In trading, 1.55 billion shares changed hands worth $3.7 billion and 455 stocks gained, 514 decreased and 385 were unchanged.

Greek government leaders agreed to form a new unity party that will share power and cabinet positions with the opposition party before the next election that is likely to take place in mid-February.

The decision was announced by the President Karolos Papoulias after Prime Minister George Papandreou agreed to step down and the opposition leader Antonis Samaras accepted the 7 conditions laid by the EU bailout plan.

Stock Movers

Computershare soared 16% or $1.14 to $8.44 after the company said it won the U.S. regulatory approval to acquire the investment services division of Bank of New York Mellon.

BHP Billiton Ltd closed down $0.25 to $37.70 and Rio Tinto Ltd decreased $1.17 to $68.80. Newcrest Mining increased 72 cents to $35.72.

Fortescue Metals Group increased 37 cents to $5.08, Lynas Corporation Limited closed up 2 cents to $1.15 and Iluka Resources rose 95 cents to $17.08.

Orica increased $1.11 to $25.41 after it reported 4% increase in full-year earnings.

Oil Search Limited decreased 5 cents to $6.38, Santos Limited fell 7 cents to $13.05 and Woodside Petroleum fell 57 cents to $36.10.

Cochlear Limited fell $1.28 to $51.72

Commonwealth Bank of Australia closed up $0.29 to $49.32 and National Australia Bank decreased 1 cent to $25.18. ANZ edged up 17 to $21.19. Westpac fell 97 cent to $21.11.

David Jones Limited closed down 1 cent to $3.20 and Wesfarmers Limited increased 37 cent to $32.40.

Woolworths Limited increased 17 cent to $24.47 and James Hardie Industries SE increased 7 cents to $6.15.

Qantas Airways Ltd closed down 1 cent at $1.61, Virgin Blue closed unchanged at 38.5 cents but Flight Centre fell 19 cents to $19.64.

Qantas resumed talks with the union workers and said it is committed to completing talks before the 21 day period set by the Fair Work Australia.

The airline completed its first round of talks with the licensed engineers union and is scheduled to talk to baggage handlers union tomorrow. Engineers union said that their pay dispute has been resolved but they are still fighting to retain 20 of the 128 positions eliminated.

The company chief executive is under fire from the lawmakers after Alan Joyce grounded the entire fleet to bring the union to the negotiating table mediated by the industrial tribunal.