Negative leads forced local stocks to session lows in the first half hour of trade, but the Australian share market clawed up throughout the day to end almost where it began after the release of Australia’s monthly jobs report. The mining sector dropped 0.9 per cent to end as the worst performer as the majors weighed. The financials finished 0.2 per cent higher, pulled up by gains among the Big Four Banks.
The S&P/ASX 200 index lost 7 points today to end at 4,484. On the futures market the SPI is 9 points lower.
Economic news
Australia’s jobless rate jumped more than expected last month, hitting a 29 month high and supporting the Reserve Bank of Australia’s decision to cut rates last week. The Australian Bureau of Statistics has reported the nation’s unemployment rate rose to 5.4 per cent in September, from 5.1 per cent the month before. The economy added 14,500 new jobs last month as the participation rate rose to 62.5 per cent.
Company news Shares in Lynas Corporation Limited
(ASX:LYC) plunged to the session’s worst performer as the rare earths developer hit another hurdle in reaching maiden production and doubts emerged over the company’s funding situation. Investors fled the stock today after Lynas announced last night a Malaysian Court has further delayed the start of production at its Malaysian refinery, which was originally planned for the first half of this year. Shares in Lynas Corporation plunged 15.12 per cent today, finishing at $0.73.
Shares in Iluka Resources Limited
(ASX:ILU) tumbled and ended as one of the session’s worst performers as the mineral sands producer posted a 22 per cent drop in third quarter production and a 58 per cent fall in third quarter revenue. Having noted a marked deterioration in major regional economies and a more pessimistic outlook at the beginning of the quarter Iluka said today market conditions remained subdued in the three months to the end of September. Shares in Iluka Resources tumbled 6.64 per cent today, ending at $9.00.
Shares in Shares in Commonwealth Bank of Australia
(ASX:CBA) rose as the bank’s broking arm CommSec boosted its annual net profit by 35 per cent to almost $79 million.
Shares in Brambles Limited
(ASX:BXB) ended steady as the pallet manufacturer confirmed it is on track to meet its annual profit guidance after generating a 3 per cent increase in first quarter revenue.
Shares in Seven Group Holdings Limited
(ASX:SVW) gained after throwing its support behind News Ltd’s bid for Consolidated Media Holdings Limited
(ASX:CMJ) after having its own bid for the pay TV company rejected by Australia’s competition regulator.
Shares in Singapore Telecommunications Limited
(ASX:SGT) fell despite the telco announcing it has secured the broadcast rights to all Barclays Premier League matches for the next three seasons.
Best and worst performers
The best performing sector was utilities adding 27 points to close at 5,071.
The worst performing sector was materials, losing 86 points to close at 10,045 points.
The best performing stock in the S&PASX 200 was Medusa Mining Limited
(ASX:MML), rising 9.02 per cent to close at $6.65. Shares in St. Barbara Limited
(ASX:SBM) and Seven Group Holdings Limited
(ASX:SVW) also closed higher.
The worst performing stock was Lynas Corporation Limited
(ASX:LYC), dropping 15.12 per cent to close at $0.73. Shares in Iluka Resources Limited
(ASX:ILU) and Intrepid Mines Limited
(ASX:IAU) also closed lower.
IPOs Emerging Markets Masters Fund
(ASX:EMF) listed, opened and closed at $1.60
Boadicea Resources Limited
(ASX:BOA) listed at $0.20, opened at $0.50 and closed at $0.565
Commodities
Gold is trading at $US1,765 an ounce.
Light crude is $0.19 up at $US91.83 a barrel.
The Australian dollar
The Australian dollar is buying $US1.028.
