Lifted by positive leads the Australian share market opened higher and rose steadily after the release of stronger than expected jobs data to close 0.8 per cent up at the sessions high.
The S&P/ASX 200 index rose 34 points to finish at 4,281. On the futures market the SPI is currently 33 points higher.
Economic news
Defying expectations for a rise Australia’s unemployment rate remained steady last month, with the economy adding more jobs than expected. The Australian Bureau of Statistics has reported 44,000 people were employed in March, leaving the unemployment rate at 5.2 per cent.
Ahead of China’s first-quarter growth figures due tomorrow, the World Bank has cut its forecast for China’s growth this year. The World Bank expects the nation’s growth to slow to 8.2 per cent this year but pick-up to 8.6 per cent next year.
Thomson Reuters GFMS has forecast gold could drop under $US1500 per ounce within the next months before rebounding to last year’s record highs. The consultancy says, “a push on towards $US2,000 is definitely on the cards before the year is out”, underpinned by fears Europe’s sovereign debt crisis could intensify.
Company news
Ten Network Holdings Limited (ASX:TEN) has blamed tough advertising markets for a 70 per cent fall in its first half net profit. Despite the media company’s result coming in worse than expected, Ten remains positive and plans to focus on the broadcasting fundamentals of ratings and revenue. Ten expects an improvement in advertising markets and says the full benefits of its turnaround strategy will take time to filter through to results. Shares in Ten Network Holdings closed 2.63 per cent higher at $0.78.
BHP Billiton Limited’s (ASX:BHP) chief Marius Kloppers says deciding to shut the Norwich Park Mine has been "terribly difficult", but that the miner won’t operate loss making operations. Speaking in Canberra today Mr Kloppers conceded a number of its commodities had seen prices come down which is making life difficult for its operations. Separately, BHP plans to invest $US708 million into expanding its Mad Dog joint venture with BP and Chevron in the Gulf of Mexico. Shares in BHP Billiton closed 0.92 per cent higher at $33.90.
Shares in Seven Group Holdings Limited (ASX:SVW) rose to the day’s best performer after the diversified investment group said it would pay $US400 million to acquire the local arm of a US parts and services business.
Shares in PanAust Limited (ASX:PNA) were also given a boost after the copper and gold miner said it had exceed its expectations for quarterly production and maintained its annual output guidance.
Shares in Aston Resources Limited (ASX:AZT) closed higher after the coal miner said it intends to vigorously defend proceedings filed from its former CEO, Hamish Collins, who claims he was entitled to “equity participation'” under the terms of his contract.
Flinders Mines Limited (ASX:FMS) dropped before heading into a trading halt as the iron ore explorer considers a court action preventing a $554 million takeover from Russia's third-largest steel producer.
Best and worst performers
All sectors added value: The best performing sector was Telco Services adding 13 points to close at 1,158. The sector with the smallest gains was Utilities, adding 12 points to close at 4,802 points.
The best performing stock in the S&PASX 200 was Seven Group Holdings Limited (ASX:SVW), rising 5.4 per cent to close at $10.34. Shares in PanAust Limited (ASX:PNA) and APN News and Media Limited (ASX:APN) also closed higher.
The worst performing stock was Kagara Limited (ASX:KZL), dropping 14.29 per cent to close at $0.12. Shares in Silver Lake Resources Limited (ASX:SLR) and Integra Mining Limited (ASX:IGR) also closed lower.
Commodities
Gold is trading at $US1,659 an ounce.
Light crude is $0.30 up at $US103 a barrel.
The Australian dollar
The Australian dollar is buying $US1.0389.
