Australian Jobless Drops to 5.3%; Rio Net Up 33%

123jump.com Staff
11 Feb, 2010
New York City

Stocks in Sydney trading gained after employers added 52,000 workers in January. The sharp gain in payrolls dragged unemployment rate to an 11-year low of 5.3%. The Australian dollar strengthened. Telstra first half profit declined 3.3%. Rio Tinto full year profit increased 33%.

[R]3:00 AM New York, 7:00 PM Sydney – Stocks in Sydney trading gained after employers added 52,000 workers in January. The sharp gain in payrolls dragged unemployment rate to an 11-year low of 5.3%. The Australian dollar strengthened. Telstra first half profit declined 3.3%. Rio Tinto full year profit increased 33%.[/R]

The Australian benchmark index rose 0.9% after employers added 52,000 workers in January and Rio Tinto full year profit surged 33%. Economists were looking employers to add less than 16,000 workers in the month.

In Sydney trading ASX 200 Index increased 0.9% or 40.9 to 4,554.30 and the Australian dollar gained.

Of the ASX 200 index stocks, 129 rose, 54 fell, and 17 were unchanged. Cudeco Ltd led gainers in the index shares with a rise of 15.3% followed by Karoon Gas Australia climbing 9.4%.

The Australian dollar gained 1.5% to 88.84 U.S. cents.

Jan Unemployment Declines to 5.3%

Australian Bureau of Statistics reported today that the country’s unemployment rate declined 0.2 percentage point to 5.3% in January, an 11-year low.

The number of people employed rose 52,700 to 10.966 million in the period, the largest increased in employment since December 2006.

Part-time employment edged up by 36,900 persons to 3.314 million and full-time employment advanced 15,900 persons to 7.652 million.

The ABS noted that the number of people unemployed dropped 22,300 persons to 612,000 in January.

The ABS seasonally adjusted monthly aggregate hours worked series decreased 14.8 million hours to 1,518.1 million hours in the month.

The employment participation rate in January remained at 65.3%.

Telstra H1 Profit Drops 3.3% to A$1.85 billion

Telstra reported today that its first half profit decreased 3.3% to A$1.85 billion after weak demand for fixed telecommunication connections and revenues in the first half declined 2.9%.

Sales from fixed-line services declined 6.9% to A$3 billion in the first half, while revenue from wireless services, including mobile phones and Internet, increased 4.7% to A$3.2 billion.

Retail Internet revenue advanced 1.4% to A$777 million, while sales from advertising and directories dropped 5.2% to A$975 million.

The phone company forecasts it will realise a single-digit decline in the 12 months ending June.

Rio Tinto Profit Rises 33% to $4.8 billion in 2009

Rio Tinto said today net profit increased 33% to $4.8 billion in 2009 from $3.7 billion a year earlier. Underlying earnings fell to $6.3 billion against forecasts of $6 billion.

Gross sales revenue fell 24% to $44 billion from $58.1 billion a year ago and posted a final dividend of 45 cents per share from 55.61 cents in the comparable period a year ago.

Chief executive officer Tom Albanese said operating cost savings of $2.6 billion contributed to the miner’s profits.

Albanese said the company will continue to pursue its joint venture with BHP Billiton after signing binding agreements for the deal in December.

ASX Movers

Telstra Corporation Limited led the decliners in the S&P ASX 200 index with a loss of 5.0% followed by losses in Hills Industries Limited of 3.3%, in Crown Limited of 2.6%, in Aristocrat Leisure Limited 2.6% and in Tower Australia Group Limited 2.5%.

CuDeco Limited led gainers in the S&P ASX 200 index with a rise of 15.2% followed by gains in Karoon Gas Australia Ltd 9.3%, in Mount Gibson Iron Limited of 9.2% and in FKP Property Group of 8.5%.

Other Movers

Australia and New Zealand Banking Group Limited added 2.7% to A$20.75 and the bank is preparing to sell four-year bonds worth A$500 million, according to Dow Jones report.

James Hardie Industries N.V advanced 2.3% to A$7.85 after the seller of home siding in the U.S announced that no interim dividend for fiscal year 2009 will be paid.

Santos Limited the oil and gas explorer rose 1.6% to A$13.25.

Telstra Corporation Limited dropped 5.0% to A$3.22 after the telecommunications and information services provider posted a 3.3% drop in first half profit but says it expects a stronger second half.

Woodside Petroleum Ltd the oil producer climbed 3.2% to A$43.00.