Australian Sharemarket Closes Down but Off Lows as Unemployment Hits Eight-Year Low

The Australian sharemarket finished the day down, but the decline was less severe than expected, thanks to positive economic indicators and improved bond prices. Analysts noted that the market started weak due to overseas downward trends, but improved throughout the day as Australian statistics and bond rate improvements offset the losses. The unemployment rate hit an eight-year low of 7.5 percent, according to the Australian Bureau of Statistics, with employment rising by 53,600 in December.

Key Takeaways:

• The Australian sharemarket closed down, but off its lows, due to positive economic indicators and improved bond prices.
• Unemployment hit an eight-year low of 7.5 percent, with employment rising by 53,600 in December.
• The market started weak due to overseas downward trends, but improved throughout the day.
• News Corp, National Australia Bank, and Lend Lease Ltd limited industrial sector losses.
• BHP plummeted 56.8 or 4.44 percent, and weaker commodity prices led the resources sector down.
• Commonwealth Bank of Australia fell 21.6 cents, ANZ Banking Group lost 21 cents, and Westpac Banking Corp dropped 15 cents.
• Australian National Industries gained 5 cents or 4.07 percent after Smorgon Steel Group took management control.
• A 2.30 U.S. dollars fall in gold bullion's price in New York led the gold index 16.2 points, or 1.43 percent, lower.

Statistics:

• Unemployment rate: 7.5 percent (eight-year low)
• Employment in December: 53,600 (seasonally adjusted)
• Australian sharemarket close: 2804.8 (down 17.2 points, or 0.61 percent)
• National turnover: 371.76 million shares; valued at 1.074 billion Australian dollars
• Industrial sector index: 5031.3 (down 12.6 points, off a low of 4999.3)
• Resources sector index: 986.1 (shedding 25.7 points)
• Gold index: 1130.3 (down 16.2 points, or 1.43 percent)

Sources:

• XINHUA (The Australian sharemarket closed down Thursday...)
• Australian Bureau of Statistics