Australian Stock Market Report – Afternoon 8/8/13

AFTERNOON REPORT
(4.45pm AEST)

The Australian share market had a solid recovery on Thursday, boosted by healthy China trade data, a solid result from Telstra (TLS) and as Australia's unemployment rate remained steady at 5.7 per cent.

The All Ordinaries Index (XAO) added 50.5 points by close or one per cent to 5047.1, after yesterday falling below the 5000 point level during a 1.8 per cent slump.

After the bell, mining giant Rio Tinto (RIO) came through with 1H numbers. 1H net earnings came in at $1.72 billion, down 71 per cent. 1H underlying earnings came in at $4.2 billion, down 18 per cent and in line with expectations. RIO declared a 1H dividend of 83.5 cent per share, an increase of 15 per cent on the prior corresponding period. RIO shares today rose 1.5 per cent to $59.48.

Telstra (TLS) shares rose 2.4 per cent today to $5.13, coming near their highs for the calendar year, after Australia's largest telco lifted its FY13 earnings by 12.9 per cent to $3.9 billion. Stronger sales of smartphones helped lift revenue by 1.9 per cent to $26 billion. As expected and previously flagged, TLS will pay shareholders a final dividend of 14c per share, taking total dividend payments to 28c.

In economic news today, employment fell by 10,200 in July after rising by a revised to 9,300 jobs created in June (previously reported as a 10,300 rise in jobs).

The unemployment rate held steady at 5.7 per cent in July - a four year high. The participation rate fell from 65.3 per cent to 65.1 per cent. Full-time jobs fell by 6,800 in July after falling by 5,100 in June. Part-time jobs fell by 3,400 in July after rising by 14,400 in June.

On the market overall, a total of 1.6 billion shares changes hands, worth $4.5 billion. 509 were up, 332 were down and 327 were unchanged.

At 4.30pm AEST the SFE 200 Futures Index was at 5001, up 35 points.

The Australian dollar remains resilient at US90.88c this evening.

[Kick off your trading day with our newsletter]