The Australian share market is regaining some of its lost ground at midday after the unemployment rate in Australia fell from a four-year high in September – a surprise to the upside of expectations.
Figures
At Midday the S&P/ASX 200 index is 9 points down at 5,144. On the futures market the SPI is 5 points down.
Economic news
The market – although in negative territory – rebounded on data showing the total number of jobs in Australia rose by 9,100 to a seasonally adjusted 11.6 million in the month.
As a result, the unemployment rate fell to 5.6 per cent, from a four-year high of 5.8 per cent in August. That was better than economists’ predictions the rate would stay the same.
Currencies
The Australian dollar pushed higher on that positive economic news. At noon, the Aussie was buying 94.54 US cents.
Company news
Shares in Cash Converters International Limited
(ASX:CCV) have plunged after news the short-term lender faces a $40 million class action amid claims that it forced customers to pay loan charges that exceed a legal cap on interest rates. Law firm Maurice Blackburn is set to initiate a class action in the Federal Court alleging thousands of customers were caught out by the high charges. Cash Converters did not comment on the claim, but says its loan products comply with all state laws. Shares in Cash Converters are trading 9.52 per cent lower at $1.14.
Bank of Queensland Limited
(ASX:BOQ) has swung to a net profit of $185.8 million, a massive turnaround on the $17 million loss it booked in the last financial year.Cash profit was about $248 million, compared to the $21 million recorded in the previous year. Shares in the Bank of Queensland are trading up 6.89 per cent at $11.17.
Best and worst performers The best performing sector is Utilities gaining 13 points to 5,499. Shares in Energy World Corporation Limited
(ASX:EWC) have risen 1.09 per cent and trading at $0.47. Shares in DUET Group
(ASX:DUE) and Spark Infrastructure Group
(ASX:SKI) are also stronger.
The worst performing sector is Materials, falling 86 points to 9,387. Shares in Evolution
(ASX:EVN) have fallen 7.37 per cent, trading at $0.72. Shares in St Barbara Limited
(ASX:SBM) and Alacer Gold Corp
(ASX:AQG) are also lower.
Gold
Gold is trading at $US1,302 an ounce dropping more than 2 per cent from yesterday’s high following news that Janet Yellen is set to lead the US Fed when Ben Bernanke steps down as chairman in February 2014
