The Australian sharemarket has ended the day 1 per cent stronger, underpinned by a jump in Rio Tinto Limited (ASX:RIO), (NYSE:RIO) shares to a one month high on the back of its quarterly production report.
The S&P/ASX200 Index closed 40 points stronger at 4,245. On the futures market, the SPI is up 21 points.
Economic news
The unemployment rate unexpectedly fell to 5.2 per cent in September from an unrevised 5.3 per cent. Economists had expected the rate to remain unchanged at 5.3 per cent. 20,400 jobs were added to the economy in September.
Company news
Qantas Airways Limited (ASX:QAN) has decided to withdraw five aircraft from service for at least a month, which will see around 100 domestic flights cut per week. It’s in response to continuing industrial action as the airline tries to minimise a growing backlog of maintenance work. Baggage handlers and ground crew continue to hold rolling strikes. Qantas shares gained 0.64 per cent, closing at $1.565.
Rio Tinto Limited (ASX:RIO), (NYSE:RIO) has reported record sales of iron ore and hard coking coal production in the September quarter. Rio sold 60 million tonnes of iron ore from its Pilbara operations, with the ports and rail recovering strongly from bad weather conditions earlier in the year. The miner produced 50 million tonnes of iron ore during the quarter, an increase of 5 per cent on the corresponding period last year. Rio shares rose 2.79 per cent to close at $69.34.
Bank of Queensland Limited’s (ASX:BOQ) annual net profit tumbled 14 per cent to just under $160 million due to slowing credit growth and an increase in bad debts.
Beach Energy Limited (ASX:BPT) commits to spend as much as $41 million to search for shale gas in the far north of Australia.
Iluka Resources Limited (ASX:ILU) has increased September quarter production by almost ten per cent.
And PanAust Limited (ASX:PNA) downgrades its full year earnings. The reason, lower copper prices and production forecasts. Production has been adversely affected by extreme rainfall.
Best and worst performers
The best performing sector was Materials, gaining 225 points to close at 11,792. The worst performing sector was Utilities, losing 11 points to close at 4,368 points.
The best performing stock in the S&P/ASX200 was Iluka Resources, gaining 9.61 per cent to close at $16.99. Shares in Coalspur Mines and Gunns also finished the day stronger. The worst performing stock was Perseus Mining, down 5.8 per cent closing at $3.25. Ausdrill and Fletcher Building also closed lower.
Commodities
Gold is trading at $US1,677 an ounce. Light crude is down 56 cents at $US85.01 a barrel.
