The Australian share market is hovering steady with direction split between mainly positive leads and a surprise drop in Australian job creation. The local dollar was swift to respond, slipping about half a cent from three-month highs. The sectors are trading mixed with strength in consumer staples helping to offset weakness among financials, utilities and materials.
Figures
The S&P/ASX 200 index has added 0.3 points to sit at 5,235. On the futures market the SPI is 9 points higher.
Economic news
Australia’s jobless rate spiked to a four-year high last month. The Australian Bureau of Statistics (ABS) reports the unemployment rate rose in line with expectations to 5.8 per cent in August from 5.7 per cent the month before. The economy defied expectations for job creation last month and lost 10,800 jobs to a seasonally adjusted 11.64 million, from a downwardly revised 11.65 million the month before. Both full-time and part-time employment dropped as did the August participation rate, dipping to 65 per cent.
Company news
Shares in Myer Holdings Limited (ASX:MYR) have fallen 2.43 per cent after the department store retailer posted an annual net profit drop of 8.7 per cent on rising costs, flagged caution over challenging economic and consumer confidence conditions and announced it will take full ownership of fashion brand sass & bide.
Shares in AGL Energy Limited
(ASX:AGK) have dipped 0.26 per cent despite the energy giant scoring the green light from Australia’s competition watchdog to buy junior retailer Australian Power and Gas Company Limited
(ASX:APK) for $100 million.
Shares in Australian Agricultural Company Limited
(ASX:AAC) have been placed in a trading halt as it prepares for a $299 million capital raising and works to diversify its business away from primary production.
Shares in New Hope Corporation Limited
(ASX:NHC) have firmed 0.42 per cent after the coal miner appointed its current chief financial officer Shane Stephan to the top job of CEO, replacing Robert Neale from February 2014.
Best and worst performers
The best performing sector is consumer staples gaining 49 points to 9,930. Shares in Coca-Cola Amatil Limited
(ASX:CCL) have risen 1.33 per cent and trading at $12.16. Shares in Metcash Limited
(ASX:MTS) and Woolworths Limited
(ASX:WOW) are also stronger.
The worst performing sector is utilities, falling 12 points to 5,365. Shares in
Energy World Corporation Limited (ASX:EWC) have dropped 1.06 per cent, trading at $0.47. Shares in APA Group (ASX:APA) and AGL Energy Limited (ASX:AGK) are also lower.
Gold and the dollar
Gold is trading at $US1,363 an ounce.
The Australian dollar is buying 92.82 US cents.
