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FIVE at FIVE AU: Tech strength leads ASX higher; unemployment remains steady

Published 14/11/2024, 03:37 pm
© Reuters.  FIVE at FIVE AU: Tech strength leads ASX higher; unemployment remains steady
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The ASX 200 gained 0.40% to 8,224 points led by a strong performance from the Tech sector (+1.96%).

Xero hit a new all-time high and ended the session up 6% after the accounting software company delivered impressive half-year results lifting operating revenue by 25% and net profit after tax by 76% to NZ$95.1 million.

Xero CEO Sukhinder Singh Cassidy said: "This result reinforces our ability to deliver on our strategy. We have delivered a solid performance across the board this half including continued strong revenue growth, and a greater than Rule of 40 outcome for the second period running."

Financials also had a strong day, up 1.3%, with each of the big four adding at least 1.3%.

Orica Ltd (ASX:ORI) recorded a 77% lift in full-year profit to $525 million, bolstered by strong demand for its high-margin digital products and innovative blasting technologies.

The Australian-based multinational, a leading global supplier of commercial explosives, credited the profit increase to its advanced digital solutions, including the cloud-based BlastIQ Underground system.

Jobs data

Australia's unemployment rate remained steady in October, at 4.1%, as the number of employed people increased by 15,900, in seasonally adjusted terms.

However, economists speculate this may be the start of a slowing trend as the pace of employment growth was noticeably slower in October than in previous months.

The Reserve Bank has forecast the unemployment rate to reach 4.3% by the year of the year, so may not be surprised by today’s figures.

ABS data show the number of people in full-time employment increased by 9,700 in October, while part-time employment increased by 6,200, in seasonally adjusted terms. This brought the total growth in employment to 15,900.

ABS head of labour statistics Bjorn Jarvis said while employment grew in October, the 0.1% increase was the slowest growth in recent months and was “lower than each of the previous six months, when employment rose by an average of 0.3% per month".

Today’s employment figures follow the release of wage data yesterday, which showed that wages are growing at their slowest annual pace since December 2022.

The 3.5% annual wages increase in the year to June remains above the 2.8% annual increase in consumer prices, meaning real incomes rose slightly during the period.

The Reserve Bank holds its final meeting of the year in mid-December but most analysts are not anticipating a rate cut.

Small cap increases

In the small caps sector, among the gainers today were Metalsgrove Mining Ltd, which reached $0.061, 15.1% higher than yesterday's close, and Kali Metals Ltd (ASX:KM1), which was as much as 11.54% higher intra-day to $0.145.

Other increases were recorded by American Rare Earths Ltd (ASX:ARR, OTCQB:ARRNF), up as much as 10.42% to $0.265, Green Technology Metals Ltd (ASX:GT1, OTC:GTMLF) lifted by 10.15% to a high of $0.076, Astral (JO:ARLJ) Resources NL (ASX:AAR) hit $0.135, an increase of 8% on the previous close, Latin Resources Ltd (ASX:LRS, OTC:LRSRF) was up to 7.5% higher at $0.215, Sovereign Metals Ltd (ASX:SVM, OTC:SVMLF, AIM:SVML) reached $0.745, a rise of 4.2%, Recce Pharmaceuticals Ltd (ASX:RCE, OTC:RECEF) increased by 4.2% to $0.48 and Tolu Minerals Ltd (ASX:TOK) was as much as 3.27% higher to $0.95.

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