Jobs data puts paid to early stock gains
The Age
Friday March 12, 2010
THE national employment figures and inflation data from China dragged stocks lower yesterday.The S&P/ASX 200 Index finished down just 5.8 points, or 0.12 per cent, at 4814.2.The index got off to a strong start, rising 20 points before the release of the employment figures at 11.30am. The lower than expected job numbers quickly undid the gains.The Bureau of Statistic figures showed the unemployment rate was a seasonally adjusted 5.3 per cent in February, compared with an unrevised 5.2 per cent in January.The market sank further just after lunch on figures from China. The nation's consumer prices were up 2.7 per cent from a year ago and up from January's 1.5 per cent rate.The market's early gains followed a continuation of the steady rally on Wall Street. The S&P 500 closed 5.16 points, or 0.45 per cent, higher.On the domestic front, the telecommunications sector led the way, rising 2.38 per cent. Telstra jumped 8, or 2.7 per cent, adding to Wednesday's 8 gain as it moved away from a record low.At the other end of the scale, information technology stocks dropped by 1.95 per cent due to a 27 slide by Computershare to $12.17,giving up much of Wednesday's 42 gain. Perpetual yesterday announced substantial changes in its holdings in Computershare.BHP Billiton closed down 23 at $43.01, Westpac lost 33 points to $27 and insurer QBE shed 35 down to $21.06.The goldminers slid after a sharp fall in the gold price. At the Sydney close, spot gold was down $US17.38 an ounce at $US1108.97.More overseas investment could be headed to Australia, with the country's public debt as a percentage of gross domestic product making it a great place to invest, Goldman Sachs JBWere said in a note to clients.Credit Suisse Equity Research said that with oil at $US81 a barrel, energy stocks would outperform estimates. "Our modelling suggests that the sector is only priced for a $US59 oil price," it said in a report. "Sector momentum also seems to be improving, with refining inventories on the decline and risk appetite set to rise."
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