Australian Jobless Rate Drops to 5.8%, Ten Network Loss Narrowed

Marcus Jacob
10 Apr, 2014
New York City

Australian stocks trimmed early gains after employers added more than expected 18,000 jobs in March. Unemployment rate fell to 5.8%. Also, market sentiment weakened after China reported 6.6% decline in exports and 11.3% in imports.

[R]5:00 PM Sydney – Australian stocks trimmed early gains after employers added more than expected 18,000 jobs in March. Unemployment rate fell to 5.8%. Also, market sentiment weakened after China reported 6.6% decline in exports and 11.3% in imports.[/R]

Australian stocks opened higher and the ASX index quickly crossed 5,500 mark after the U.S. Fed signaled rates are likely to stay low longer than anticipated.

Investors also took the latest increase of more than expected rise in monthly net new jobs as inflationary and backed off from adding more stocks.

The Australian Bureau of Statistics reported jobless rate in March dropped to 5.8% and participation rate fell to 64.7% in March, the Australian economy created 18,100 jobs in the month.

Also, mining and resource stocks declined after China reported 6.6% decline in exports and 11.3% fall in imports in March.

Australian dollar closed at 94.21 U.S. cents and stock market trading turnover rose to 849 million shares worth $4.45 billion.

The ASX 200 index rose 17 or 0.3% to 5,480.80 and the broader All Ordinaries gained 17.20 to 5,477.50.

Stocks in Review

Rio Tinto fell 19 cents to $64.95. BHP fell 49 cent to $37.91. Woodside Petroleum Limited fell 6 cents to $39.25.

Westpac Banking Corp increased 16 cents to $34.86.

Australia and New Zealand Banking Group rose 0.9% to $34.19 after the bank signed an agreement to sell its trustee business for $150 million and form a partnership with Australia''s largest independent trustee services company.

Transurban Group gained 1.1% to $7.36 after the toll road operator said toll revenue in the quarter ending in March climbed 12.9% to $221.7 million after strong performance from its Sydney network.

Ten Network Holdings Limited climbed 3.8% to 27 cents after the media company reported revenue in the first-half ending in February increased 4.4% to $315 million and net loss in the period narrowed to $8 million compared to $243.3 million a year ago period.