Following negative overseas leads, the Australian share market opened lower and hit morning lows before rising steadily ahead of the ABS labour force data release. The market took a sharp upturn on the back of those figures and is 0.3 per cent down at noon.
The S&P/ASX 200 index is 14 points down at 4,477. On the futures market the SPI is down by 11 points. Economic news
The Bureau of Statistics has reported Australia’s unemployment rate lifted to 5.4 per cent in September, up from 5.1 per cent in August. The labour force index also revealed that the Australian economy added 14,500 new jobs, while the employment participation rate rose to 62.5 per cent. Company news
Seven Group Holdings Limited (ASX:SVW)
has had its takeover bid for Consolidated Media Holdings Limited (ASX:CMJ)
opposed by the Australian Competition and Consumer Commission. The ACCC believes that the proposed deal would substantially decrease competition in the free to air television market. Following the decision, Seven intends to throw its support behind the $2 billion takeover offer from News Limited. Shares in Seven Group Holdings are trading down 0.14per cent at $7.02.
Qantas Airways Limited (ASX:QAN)
and Virgin Australia Holdings Limited (ASX:VAH)
are reportedly cutting back on flight frequencies between Melbourne, Sydney and Brisbane in an effort to protect their market positions. According to Fairfax Media, Australia’s largest carrier intends to reduce capacity to ensure that it retains around 65 per cent of domestic market share. Profits at Qantas and Virgin havecome under pressure in recent months due to aggressive efforts from both to match each other’s flight schedule capacities. Shares in Qantas are trading down1.13 per cent at $1.31. Best and worst performers
The best performing sector is Telco services gaining 8 points to 1,349. Shares in Telstra Corporation Limited (ASX:TLS)
have risen 0.51 per cent and trading at $3.93. Shares in TPG Telecom Limited (ASX:TPM)
is trading steady while Telecom Corporation of New Zealand (ASX:TEL)
is slightly lower at midday.
The worst performing sector is Materials, falling 103 points to 10,028. Shares in Lynas Corporation Limited (ASX:LYC)
have fallen 15.41 per cent, trading at $0.73. Shares in Intrepid Mines Limited (ASX:IAU)
and Fortescue Metals Group Limited (ASX:FMG)
are also lower. Gold and the dollar
Gold is trading at $US1,761 an ounce and the Australian dollar is buying $US1.025.