Australian Unemployment Falls to 4.9%, Stocks Rebound

Marcus Jacob
10 May, 2012
New York City

Australian indexes rebounded from the one-month low after April unemployment rate unexpectedly declined to 4.9% as employers add more part time positions. News Corp third quarter net increased 47% and Murdoch family face more resignation calls. Leighton won $800 million infrastructure project in Queensland.

[R]8:00 PM Sydney – Australian indexes rebounded from the one-month low after April unemployment rate unexpectedly declined to 4.9% as employers add more part time positions. News Corp third quarter net increased 47% and Murdoch family face more resignation calls. Leighton won $800 million infrastructure project in Queensland.[/R]

Australian indexes rebounded from the one-month low as commodities prices improve and unemployment rate declined.

The jobless rate fell to 4.9% in April from 5.2% in March according to the latest data released by the Australian Bureau of Statistics. Employers added 26,00 part time positions and cut 10,500 full-time positions adding net 15,500 positions.

Net job creation in March was trimmed to 37,600 from 44,000 after the full time positions created was revised downwards to 10,600 from the previous estimate of 15800.

The ABS report also showed aggregate hours worked in the month increased 0.4% after adjusting for seasonality and after falling 0.7% in March.

The ASX 200 index gained 20.50 to 4,295.60 and All Ordinaries index increased 21.60 to 4,353.84.

The Australian dollar improved to US$1.013 after the release of the latest unemployment report.

Stock Movers

News Corp increased 89 cents to $20.16 after third quarter net profit increased 47% and the company faced multiple inquiries at its UK newspaper operations linked to the hacking scandal. Increasingly large shareholders are demanding the removal of Rupert Murdoch from the company and improve corporate governance.

David Jones Limited increased 5 cents to $2.36, Harvey Norman Holdings closed unchanged to $2.00 and Woolworths gained 6 cent to $26.55.

Myer added 2 cents to $2.27 and Kathmandu fell 3 cents to $1.26. Billabong International Limited edged up 1 cent to $2.30.

Mining and resources stocks were higher after a rebound in commodities prices and Rio Tinto chief expressed higher confidence in global economy.

BHP Billiton gained 29 cents to $34.62 and Rio Tinto soared 71 cents to $61.94.

Lynas Corporation Limited inched down 5 cents to 97 cents and Iluka Resources surged 75 cents or 5.8% to $13.60. Newcrest Mining advanced $1.33 or 5.5% to $25.13 and Kingsgate increased 16 cents to $5.69.

Oil Search Limited added 4 cents to $7 and Santos Limited unchanged to $12.93. Caltex Australian decreased 1 cent to $13.39 after the company said it is reviewing the future of loss making Kurnell refinery in Sydney.

Westpac Banking Corporation closed up 6 cents at $22.90 and Commonwealth Bank of Australia gained 24 cents to $51.90. Bank of Queensland rose 4 cents to $6.89. ANZ plunged 97 cent to $22.15. National Australia Bank fell 4 cents at $24.57.

Stockland down 5 cents to $3.18 and Leighton advanced 17 cents to $19.35 after the company won $800 million of gas and water infrastructure projects in Queensland.

Qantas rose 1 cent to $1.50, Virgin Australia inched up 10 cents to 41.5 cents and Flight Centre dropped 21 cents to $19.49.

QR National increased 11 cents to $3.54.

SingTel closed unchanged at $2.53 after Optus, wireless operator controlled by the company, said fiscal 2012 net profit increased 1.5% to $787 million despite the price competition in the industry.