AFTERNOON REPORT
(4.30pm AEDT)

The local share market posted its fourth win in a row today, kick-starting the trading week on a positive note. Investor sentiment remained buoyant after German and French leaders agreed to do all that is necessary to secure the recapitalisation of European banks. Share markets around the Asian region were generally positive, despite ratings agency Fitch cutting the credit ratings of Italy and Spain. The All Ordinaries Index (XAO) gained 37.3pts or 0.9pct to 4262.3 while the S&P/ASX 200 Index (XJO) firmed by 38.1pts or 0.9pct to 4201.

The energy sector was the best performing, thanks to speculation a Chinese company is considering a take-over offer for Extract Resources (EXT). Extract shares were placed in a trading halt after rising 10.2pct to $8.86 in early trade. Media reports suggest China´s Guandong Nuclear Power is set to make a $2.2 billion offer for Extract, moving on the company's biggest shareholder, London-listed Kalahari Minerals. Shares in Paladin Energy (PDN) rose 10.3pct to $1.71. The energy sector as a whole firmed by 1.9pct with Caltex (CTX) up 3.8pct to $13.15.

Mining stocks were generally firmer, however a 0.3pct drop from index leader BHP Billiton (BHP) capped gains in the sector. BHP shares finished at $37.10 while Rio Tinto (RIO) was up 1.5pct to $67.40. BHP, RIO, WBC,MQG, GNS,

The financial sector gained 1.2pct with shares in Westpac (WBC) the best out of the big four, rising 2.2pct to $21.70. Macquarie Group (MQG) added 1.6pct to $24.44.

Shares in timber company Gunns (GNS) rose two cents to $0.165 on the back of the market rally. In percentage terms the win looked strong, GNS shares increasing by 13.8pct.

Economic data released today consolidated the view of a stalling economy, with job advertisements down 2.1pct in September, the fifth decline in six months. Businesses are slowing down on hiring due to uncertainty in the overall global economy.

"The fifth fall in job ads in six months confirms that the job market has hit the wall and that rate cuts are on the table," CommSec Chief Economist Craig James said of the data. "The troubling aspect for the Reserve Bank is how quickly economic momentum has been lost. Up to March the economy appeared to be chugging along. But since April, business and consumer confidence has fallen sharply, affecting spending and hiring decisions."

The key jobs report comes out on Thursday, with monthly employment and unemployment numbers being released. CommSec expects around 10,000 jobs were created in September, another weak result. Unemployment should remain at 5.3pct.

The Australian dollar ended the day's session at US98.39c, £0.6301 and €72.98c.

On the market overall, a total of 1.54 billion shares were traded, worth $4.23 billion. 568 were up, 403 were down and 333 were unchanged.

Ahead tonight, the Columbus Day holiday is observed in the US. Government offices are closed but the sharemarket is open.