Australian Stock Market Report – Afternoon 1/16/14

EVENING REPORT
(5pm AEDT)

The Australian share market had its best performance for 2014 today, adding to yesterday's gains and more than making up for the losses on Tuesday. The All Ordinaries Index (XAO) rose 63.9 points or 1.2 per cent to finish at 5319.4 points.

Despite the gains on our market, it wasn't a great day for economic news. Employment fell by 22,600 in December after a revised 10,500 gain in jobs in November (previously reported as a 21,000 increase in jobs). Full-time jobs fell by 31,600 in December and part-time jobs rose by 9,000. In the 2013 calendar year just 54,600 jobs were created, marking the weakest result for a calendar year since 1996. Part time employment lifted by almost 122,100 workers over 2013 compared with 67,500 full-time jobs lost.

The unemployment rate in Australia is currently at 5.8 per cent.

In company news, Bega Cheese (BGA) announced it would be selling its 18.8 per cent stake in Warrnambool Cheese and Butter (WCB) to Canadian dairy giant Saputo, putting Saputo in the prime position to take complete control of WCB following a lengthy takeover battle. BGA shares rose 0.2 per cent today to close at $4.62 while WCB rose 1.3 per cent to $9.40.

In the materials space, Iluka Resources (ILU) was a standout, rising 7.6 per cent to $8.89 after announcing positive market guidance in its 4Q production report.

Air New Zealand (AIZ) and Singapore Airlines today announced they will form an alliance which will see Singapore Airline operate an A380 to Auckland for the first time. AIZ shares rose 1.6 per cent to $1.605.

On the market overall, a total of 1.7 billion shares changed hands, worth $4.7 billion. 616 were up, 340 were down and 341 were unchanged.

At 4.30pm AEDT the SFE 200 Futures was at 5271, up 66 points.

Ahead tonight, inflation data is released in the US.

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