The Australian share market continues to be plagued by the US debt stalemate, finishing slightly down however well off the days lows after an unexpected drop in the jobless rate. The major sectors were mostly flat with Materials shedding just over half a per cent to weigh the market today.
The S&P/ASX 200 index closed 6 points down to finish at 5,147. The value of trades was $3.7 billion on volume of 648 million shares at the close of trade. The top three stocks by value were QBE Insurance Group Limited
(ASX:QBE), BHP Billiton Limited
(ASX:BHP) and Commonwealth Bank of Australia
(ASX:CBA).
On the futures market the SPI is 8 points down.
Economic news
The Australian Bureau of Statistics revealed that the nation’s unemployment rate fell from a four year high in September, with the total number of jobs rising 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 5.8 per cent in August. That was better than economists’ predictions the rate would stay the same.
Company news
Transurban Group
(ASX:TCL) says it has made solid progress on talks with the NSW Government regarding a $2.65 billion proposal for a tunnel in Sydney’s north. Chairman Lindsay Maxsted says agreement has been reached on basic funding sources for the 8 kilometre tunnel, with the parties now working through the third phase of the government’s unsolicited proposal framework. Shares in Transurban closed 0.58 per cent up at $6.99.
Worleyparsons Limited
(ASX:WOR) first half profit warning issued yesterday has inspired several earnings cautions among analysts.
Deutsche Bank and Credit Suisse have both expressed concerns to clients, with Deutsche bank saying the downgrade came at a time Worley should be benefiting from FX tailwinds and lower corporate costs. Shares in Worleyparsons closed 1.4 per cent up at $22.41.
Whitehaven Coal Limited
(ASX:WHC) has entered into a contract with Leighton Contractors Pty Ltd to build the rail loop for the Maules Creek mine.
Bank of Queensland’s Limited
(ASX:BOQ) shares jumped 6.7 per cent after it swung to a net profit of $185.8 million, a massive turnaround on the $17 million loss it booked in the last financial year, driven by a reduction in bad debts due to improved credit management practices.
Cash Converters International Limited
(ASX:CCV) shares fell 3.57 per cent after it emerged the second hand retailer faces a $40 million class action amid claims that it forced customers to pay loan charges that exceed a legal cap on interest rates.
Virgin Australia Holdings Limited
(ASX:VAH) has priced a further $68.4 million worth of enhanced equipment notes, after another notes offer was announced this week.
Best and worst performers
The best performing sector was Utilities adding 24 points to close at 5,510.
The worst performing sector was Materials, losing 59 points to close at 9,414.
The best performing stock in the S&PASX 200 was Bank of Queensland Limited
(ASX:BOQ), rising 6.7 per cent to close at $11.15. Shares in Sigma Pharmaceutical Limited
(ASX:SIP) and Sundance Resources Limited
(ASX:SDL) also closed higher.
The worst performing stock was St. Barbara Limited
(ASX:SBM), dropping 9.09 per cent to close at $0.45. Shares in Regis Resources Limited
(ASX:RRL) and Medusa Mining Limited
(ASX:MML) also closed lower.
Commodities
Gold is trading at $US1,303 an ounce. Light crude is $1.88 down at $US101.61 a barrel.
The Australian dollar
The Australian dollar is buying $US0.9396.
