Shares lower after weak US lead, Ansett administration finally over: Midday Roundup

The Australian sharemarket has opened lower this morning after a weak lead from the United States, where stocks fell after a volatile day in trading due to an array of economic data.

The benchmark S&P/ASX200 index was down 38 points or 0.9% to 4268.5 at 12.00AEST, while the Australian dollar rose slightly to $US1.07c.

AMP shares lost 1.75% to $4.49, as Commonwealth Bank shares lost 0.56% to $47.81. Westpac lost 0.34% to $20.65, while NAB fell 0.42% to $23.75.

In the United States, the Dow Jones Industrial Average fell by 119 points or 1.03% to 11,493.57, after economic data showed that new claims for jobless benefits were down, and that retail spending had improved slightly.

Origin chief says company value not reflected in share price

Chief executive of Origin Energy, Grant King, has said the value of the company is not reflected in its current share price.

In an interview with Business Spectator, King has also said that the market will take time to view the Gladstone project investment as a beneficial move.

“The market is in a mood where it’s quite difficult to sell people ideas and projects that have quite a long development period,” he said, adding that Gladstone would take four years before Origin began receiving revenue.

“From the point of view of Origin investors, they recognise the value when I talk to them about the projects that we’re involved in.”

King says the company has a challenge in being able to “convince investors that the risk is manageable and it would ultimately result in a better reflection in our share price of the value of the opportunity”.

Coalition continues to press for IR reform

The Coalition has continued to call for industrial relations reform, with opposition workplace relations spokesman Eric Abetz telling ABC Radio that “we have made it clear that WorkChoices is dead, buried and cremated”.

“I talk to small businesses that are cutting their opening hours because of the problems associated with the modern awards.”

“Now, any government should be alert to those sort of concerns and we are listening to the people, whereas Labor is saying everything is fine and dandy when clearly it is not.”

Abetz urged the Government to hasten its Fair Work inquiry. “Let’s listen to the community and let’s see how we can enhance the Fair Work system,” he said.

Final payments sent to Ansett employees

The final payments have been sent to the former employees of collapsed airline Ansett, administrator Mark Korda of KordaMentha has announced.

“This final chapter does not ease the pain, but it helps bring closure,” Korda said. “At the time, there were people who were tipping a return of 40 to 50% and, happily, they have been proved wrong,” he said.