After a positive start to the day, the Australian sharemarket took a dive further into the red in response to worse than expected jobs data, but managed to claw back some ground later this afternoon to finish the day flat.
The S&P/ASX200 Index closed 5 points higher at 4,188. On the futures market, the SPI is currently down 9 points.
Economic news
Taking a closer look at that jobs data now, and the labour market has taken a turn for the worst, Australia’s unemployment rate hitting a ten month high, climbing to 5.3 per cent in August.
Company news
The Takeovers Panel deals a blow to global brewer SABMiller’s takeover strategy for Foster's Group Limited (ASX:FGL). The panel has refused to conduct proceedings on the takeover target’s recent financial results and outlook statements, finding no reason to take action against the group. Foster’s has welcomed the decision, rejecting SABMiller’s accusations. Foster’s shares gained 0.21 per cent, to close at $4.85.
A dispute over the 50-50 Eagle Downs joint venture between Aquila Resources Limited (ASX:AQA) and Vale will continue to trial, says Aquila. Earlier today the Queensland Supreme Court granted an injunction lodged by Aquila to block a planned meeting, arguing the vote could cause major damage to the smaller company. Aquila shares closed 0.66 per cent higher today at $6.07.
Qantas Airways Limited (ASX:QAN) turns back a flight headed to New Zealand because of a problem with the cockpit display.
BHP Billiton Limited (ASX:BHP) announces a huge upgrade in the size of its Mad Dog oil and gas field in the Gulf of Mexico – as much as 4 billion barrels.
Gunns Limited’s (ASX:GNS) controversial Tasmanian pulp mill faces another legal hurdle. “Pulp the Mill” has launched legal action to prevent further work on the site.
Macquarie Group Limited (ASX:MQG) may have to cut more than a thousand jobs and slash compensation this year according to a report in The Australian. It follows yesterday’s warning that key businesses are struggling.
Best and worst performers
The best performing sector was Energy, gaining 105 points to close at 13,049. The worst performing sector was Telco Services, falling 3 points to close at 1,036.
The best performing stock in the S&P/ASX200 was Caltex Australia Limited, lifting 8.93 per cent to close at $11.22. Shares in Karoon Gas Australia Limited and Sigma Pharmaceuticals also finished the day stronger.
The worst performing stock was Seek Limited, losing 3.39 per cent to close at $5.13. Linc Energy Limited and Alumina Limited also closed lower.
Commodities
Gold is trading at $US1,841 an ounce. Light Crude Oil is up 34 cents to $89.68 a barrel.
