The Australian share market closed 0.61 per cent higher despite negative employment data. The unemployment rate jumped from 5.1 per cent in September to 5.4 per cent in October. The market was boosted by demand for energy and resources stocks after positive data emerged from offshore over night. A bigger-than-expected increase in Chinese inflation also contributed to the Australian share market closing in black.
The S&P/ASX 200 Index is up 29 points to 4,729. The SPI/200 is up 23 points.
To company news: Fairfax Media (ASX:FXJ) says it expects first-half earnings growth to come in at a high single-digit pace if current trends continue up until Christmas. During the first four months of the financial year, Fairfax has seen revenue grow by 4 per cent compared to the same period last year. Fairfax chief executive Brian McCarthy says although the media industry has gone through a period of uncertainty with tough market conditions, it is now moving into a more positive era. Fairfax has not commented on plans to restructure the firms’ print and online business ahead of an investors briefing scheduled for November 23. Shares in Fairfax closed 2.04 per cent lower at $1.44.
Qantas Airways Ltd (ASX:QAN) says it expects its Airbus A380 fleet to remain grounded for another 48 hours as investigations continue. The company says it has no firm update on when the aircraft will be in the air and is complying with directives from the European Aviation Safety Agency. Last week, Qantas grounded six of its A380’s after a Rolls-Royce engine broke mid-air forcing the world’s largest passenger plane to make an emergency landing in Singapore with 459 passengers and crew on board. Qantas shares closed 2.5 per cent higher at $2.87.
Australia’s largest steelmaker BlueScope Steel Ltd (ASX:BSL) has warned that it may post an after tax lost in the first half of the 2011 financial year as it continues to face tough market conditions.
Shares in mining company Straits Resources Ltd (ASX:SRL) have jumped by almost 14 per cent after the company agreed to a takeover by Thailand’s top energy firm PTT Pcl for $544 million.
Australian and New Zealand Banking Group (ASX:ANZ) has defied political and consumer outrage by hiking its mortgage rate by 39 basis points to 7.8 percent. The bank, however, plans to soften the blow by dropping some of its mortgage exit fees.
Global miner BHP Billiton Ltd (ASX:BHP) has been given the green light by US regulators to proceed with drilling a deepwater well in the Gulf of Mexico.
In the best and worst market performers: The best performing sector was Materials which closed 184 points higher to 13,923. The worst performing sector was Consumer Discretionary with the index falling 7 points to 1,550. The best performing stock in the S&P/ ASX200 was Murchison Metals as shares were 19.48 per cent higher at $1.38. Shares in Straits Resources and Gunns also closed higher. The worst performing stock was Hastie Group, with shares dropping 3.67 per cent to $1.18. Shares in Nufarm and Orica also closed in the red.
In commodities, gold is trading at $US1,406 an ounce. Light crude is up 46 cents to $88.27.
