Australian Unemployment Rises

123jump.com Staff
11 Dec, 2008
New York City

Australian market averages fell after November unemployment rose to 4.4%. The Canberra Times reported that Qantas was charged with A$20 million on freight price fixing. Santos agreed to transfer 18% interest at an Indonesian location.

[R]3:00AM New York, 7:00PM Sydney - November unemployment rate rises to 4.4% in Australia.[/R]

Australian market averages fell after a government report showed that the country''s unemployment rate soared in November.

Commodity stocks pared losses as metal prices edged higher after the U.S. House passed auto bailout plan with conditions that companies lower debt, staff and dealers.

In Sydney trading ASX 200 index fell 1.2% or 42.7 to 3,598.00.

Of the FTSE 100 index stocks 47 rose, 143 declined, and 10 were unchanged. Equinox Mine led advancers in the index shares with a rise of 12.7% after metal prices increased.

[Employment Rate Falls 4.4% in November

Australian Bureau of Statistics reported today that the country''s employment dropped 15,600 to 10.7 million, while full time employment gained 8,800 to 7.7 million in seasonally adjusted terms.

Unemployment in the month increased 7,900 to 496,600 and the number of persons looking for full-time work advanced 5,900 to 344,700.

The number of people looking for part-time work increased 2,000 to 151,900.

ABS noted that unemployment rate rose by 0.1 percentage points to 4.4%, but the participation rate fell by 0.2 percentage points to 65.1%.

In addition, the male unemployment rate increased by 0.1 percentage point to 4.1%, and the female unemployment rate increased by 0.1 percentage point but remained at 4.8%.

Gainers & Losers

Equinox Mine- CDI led advancers in the ASX 200 index shares with a rise of 12.7% followed by increases in Paladin Energy of 11.8%, in Challenger Financial of 11.6%, in Rio Tinto of 7%, and Nexus Energy of 6.7%.

Other commodity stocks also advanced as oil prices rose 6.5% to $45 per barrel and copper futures rose 0.5%.

Sino Gold jumped 6% and Riversdale Mining gained 5.7%.

ING Industrial led decliners in the ASX 200 index shares with a fall of 52.5% followed by losses in Bluescope Steel of 26.1%, in Alescorp Corp. of 14.8%, in MacMahon Holdings of 12% and Tishman Speyer of 11.4%.

Qantas Charged A$20 million for price fixing

The Canberra Times reported today that Qantas was charged A$20 million for cargo freight rate price fixing and may be exposed to more.

The company earlier admitted its guilt to the competition regulator for illegally ramping up its freight charges in concert with other international airlines between 2001 and 2006.

Qantas still faces a class action brought by freight clients in America.

Santos Transfers 18% interest in Brantas

Santos reported today that it has agreed to transfer 18% minority interest in the Brantas Production Sharing Contract in Indonesia to Minarak Labuan Co Ltd.

The transaction has been approved by the regulatory authorities in Indonesia.

Santos Brantas and its related parties will receive a release, which covers any past, present and future claims from each of its former Brantas PSC participants and Minarak. The company will make a payment of $22.5 million to Minarak, with these funds to support the long term mud management efforts.

Brantas PSC includes the Banjar-Panji 1 onshore exploration well in Sidoarjo, where a major mudflow incident started in May 2006. However, the deal doesn''t remove possible third party claims directly against Santos Brantas.