Australian Jobless Rate at 4-Year High, ASX Rebounds 1.3%

Marcus Jacob
11 Jul, 2013
New York City

Australian and Asian markets rebounded after positive assurances from the U.S. Fed Chairman Bernanke. Australian jobless rate rose more than expected to 5.7% and a private survey showed a decline in property market confidence. Newcrest Mining to cut more jobs.

[R]5:30 PM Sydney – Australian and Asian markets rebounded after positive assurances from the U.S. Fed Chairman Bernanke. Australian jobless rate rose more than expected to 5.7% and a private survey showed a decline in property market confidence. Newcrest Mining to cut more jobs.[/R]

Australian stocks soared more than 1% after U.S. Federal Reserve Chairman Ben Bernanke insisted that the stimulus will remain in place. However, several policy makers were divided about the timing of the tapering of economic stimulus.

The ASX 200 index jumped 64.30 or 1.3% to close at 4,965.70 and the broader All Ordinaries climbed 61.50 to 4,946.90.

Australian dollar traded higher at 92.78 U.S. cents and in stock trading turnover slid to 759 million shares worth $4 billion.

The Australian Bureau of Statistics reported unemployment rate rose 5.7% in June from an upwardly revised rate of 5.6% in the previous month. The economy added 10,300 new jobs in June.

Home prices across Australia increased 0.1% in the second quarter to June, according to a private survey conducted by National Australia Bank. The survey also estimated home prices to increase 1.4% in 2014 and 2.4% in 2015.

Stocks in Review

Rio Tinto jumped $1.93 to $54.32 and BHP climbed $1.01 to $32.84. Woodside Petroleum Limited gained 57 cents to $37.32.

David Jones Limited rose 4 cents to $2.53 and Breville Group slid 3 cents to $7.36.
Woolworths increased 35 cents to $33.55.

Mirvac Group slipped 5 cents to $1.63. Lend Lease advanced 20 cents to $9.06.

Westpac climbed 45 cents to $29.49, Commonwealth increased 1.5% to $71.41 and National Australia Bank rose 1.8% to $29.98. ANZ added 34 cents to $28.98.

ASX Limited increased 48 cents to $34.84 after the exchange operator raised $553 million equally from the fund managers and individual investors to fuel its clearing house business and pay back debt.

AGL Energy Limited gained 1.1% to $15.03 after the gas and electricity provider said the delay in its wind farm for $550 million project was mainly due to uncertainty in government policy.

Arrium Limited soared 5.5% to 87 cents after the iron ore producer said the recent decline in Australian dollar will increase earnings this quarter. The company generates 27% of its revenue from outside of Australia.

Arrium plans to complete gold and copper prospects exploration work in its South Australia basin.

Newcrest Mining Limited climbed 11.6% to $11.10 after the miner plan to cut more jobs from its Telfer mine in Western Australia, according to several local media reports. The gold miner a month ago estimated a record write down of $6 billion and the continued weakness in the gold prices are wreaking havoc in the mining industry.

Separately, Perennial Investment Partners have already sold its stake in the company a month ago.