Australia Adds10,000 Jobs in October, Faifax Sells His State

Marcus Jacob
10 Nov, 2011
New York City

Australian stocks recovered from the early selloff after China reported rising imports. Australia added net new 10,100 jobs in October. Brambles quarterly net soars 32%. John B. Fairfax sold his remaining 9.7% in the namesake media company.

[R]6:00 PM Sydney – Australian stocks recovered from the early selloff after China reported rising imports. Australia added net new 10,100 jobs in October. Brambles quarterly net soars 32%. John B. Fairfax sold his remaining 9.7% in the namesake media company.[/R]

Australian trading was dominated by the fears that the euro zone crisis reached a new level and may snowball out of control.

The alarm bells were sounded loud in the international bond market when Italian bonds traded at 7.35% yield and French bond yields rose to 3%. The yields on Italian bonds have doubled in less than year and have reached a level that forced Greece, Portugal, Spain and Ireland to seek a bailout.

However, Italian debt is larger than the combined debt of Greece, Portugal and Ireland and Spain and no European authority is capable of offering a credible financial rescue.

The ASX 200 index fell 102 or 2.3% to 4,244.1 and All Ordinaries index decreased 2.2% or 98.9 to 4,307.30.

The Australian dollar added 0.8% to US$1.014.

In trading, 1.79 billion shares changed hands worth $5.71 billion and 259 stocks gained, 788 decreased and 331 were unchanged.

Australia created net new jobs of 10,100 in October matching the forecasts laid out by economists and unemployment rate declined to 5.2% from the revised 5.3% in September.

The economy added 20,000 new full-time jobs and hours worked in the month increased 0.6%.

Stock Movers

Fairfax Media Ltd edged 0.5 cent lower to 92.5 cents and the company founded John B. Fairfax completed the sale of its last remaining 9.7% stake in the company for $193 million.

The stock of the media company has dropped sharply in the last two four years when John B. Fairfax merged Rural Press with the company. The stock has fallen from $4.72 to 92.5 cents.

Mr Fairfax received $1.80 in cash and 2.3 Fairfax shares for his 63.5 million Rural Press shares.

BHP Billiton Ltd closed down $0.85 to $37.48 and Rio Tinto Ltd decreased $1.87 to $68.88. Newcrest Mining increased 81 cents to $36.87.

Fortescue Metals Group decreased 41 cents to $4.69, Lynas Corporation Limited closed down 2 cents to $1.17 and Iluka Resources fell 96 cents to $17.10. Kingsgate Consolidated decreased 16 cents to $6.86.

Lynas suffered a court loss in Malawi, Africa. Malawai High Court said a rare earth mine at Kangankunde tenement should be transferred back to Michael Saner. South Africa based geologist controlled the license in 2003.

Oil Search Limited decreased 23 cents to $6.33, Santos Limited fell 25 cents to $13.18 and Woodside Petroleum fell 95 cents to $35.75.

Brambles declined 3 cents to $6.65 after the pallet maker said first quarter revenues soared 32% and estimated full year profit of US$1.1 billion.

Cochlear Limited fell $0.20 to $52.50.

Commonwealth Bank of Australia closed down $1.13 to $48.83 and National Australia Bank decreased $1.23 to $24.53. ANZ edged down $1.24 to $20.52. Westpac fell 70 cent to $20.86.

David Jones Limited closed down 4 cents to $3.25 and Wesfarmers Limited closed unchanged at $32.75. Harvey Norman decreased 4 cents to $2.15.

Woolworths Limited decreased 31 cent to $24.47 and James Hardie Industries SE decreased 15 cents to $6.05.

Qantas Airways Ltd closed down 5 cent at $1.58, Virgin Blue closed fell 0.5 cent 38 cents but Flight Centre fell 50 cents to $19.50.