Australian Stock Market Report - Closing 13/01/2011
The local share market rose to its highest level in two weeks, posting its best win for 2011 today, on the back of a strong offshore lead and hopes the worst of the Queensland flooding has now passed. The All Ordinaries Index (XAO) gained 69.6pts or 1.4pct to 4901.5 while the S&P/ASX 200 Index (XJO) firmed by 71pts or 1.5pct to 4795.2.
Financial stocks all closed higher, with shares in the NAB (NAB) rising 1.7pct to $24.20 and Westpac (WBC) firmer by 1.6pct to $22.32. Shares in the Commonwealth Bank (CBA) advanced by 1.6pct to $51.13 while the ANZ (ANZ) was up 1.1pct to $22.96. Macquarie Group (MQG) advanced by 3.7pct to $39.16.
Insurance stocks also fought back, with Suncorp-Metway (SUN) up 2.2pct to $8.47 and IAG (IAG) up 3pct to $3.85. Shares in QBE (QBE) increased by 1.4pct to $18.40.
Also in the sector, fund manager Henderson Group (HGG) rose 11.6pct to $2.40 after buying a UK rival for $500 million.
Index leader BHP Billiton (BHP) gained 1.9pct to $46.05 in response to firmer metals trade in London overnight, while Rio Tinto (RIO) was up 2.2pct to $87.05 and Fortescue Metals Group (FMG) increased by 1.5pct to $6.82. Atlas Iron (AGO) firmed by 6pct to $3.36.
Energy stocks were mostly stronger, with shares in Santos (STO) up 2.2pct to $13.45 on confirmation its US$16 billion liquefied natural gas project in Gladstone will proceed. However Caltex (CTX) continued to slump, on news the flood damage to its Lytton terminal will cost the business between $5-10 million. CTX lost a further 1.3pct today to close at $13.96.
Telstra (TLS) shares closed higher by 0.7pct to $2.87.
Companies which were sold off yesterday on flood concerns, today performed better. Shares in QR National (QRN) gained 2.2pct to $2.74 while Asciano Group (AIO) was up 5.3pct to $1.60. The Bank of Queensland (BOQ) rose by 3pct to $9.89.
Employment rose by just 2,300 people in December, well below forecasts centred on job gains of around 25,000 (range from +10,000 to +40,000 jobs). The November result was not revised, recording job growth of 54,600 people. Full-time employment rose by 1,700 in December (November jobs were up by 55,400) and part-time jobs rose by 600 (November jobs fell by 800).
Despite the meagre job growth, the unemployment rate fell from 5.2pct to 5pct. The main reason for the drop in unemployment was an apparent fall in the number of people in the workforce. The participation rate fell from a record high of 66pct to 65.8pct. The working age population rose by 19,700.
Average hours worked fell by 0.2pct in December but rose by 2.8 pct over the year.
Across the states and territories unemployment rates in December were: NSW 4.6pct (5pct in November); Victoria 4.9pct (5.5pct); Queensland 6pct (5.6pct); South Australia 5.6 pct (5.6pct); Western Australia 4.4pct (4.5pct); Tasmania 5pct (5.4pct); Northern Territory 2.6pct (2.7pct); ACT 3.3pct (3.2pct).
The Australian dollar ended the day’s trade at US99.53c, £0.6319 and €75.93c.
On the market overall, a total of 2.76 billion shares were traded, worth $4.65 billion. 780 were up, 402 were down and 341 were unchanged.
At 4.30pm AEDT on the ASX24, the futures contract was at 4786, up 72pts.
Ahead tonight; the November trade balance, weekly jobs data and the producer price index are all released in the US.
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