Australian Market Report of August 13, 2010

Sydney, Aug 13, 2010 AEST (ABN Newswire) - The Australian stock market is higher in morning trade, despite that Wall Street recorded falls for the third consecutive trading day.

In early trade, the S&P/ASX200 index was up 0.37%, at 4417.1 points, while the All Ordinaries index gained 0.37%, to 4438.8 points. Materials stocks rose 1.3%, industrials were 0.7% higher and the financials index gained 0.1%.

In economics news, the unemployment rate for July rose to 5.3% from 5.1% in June, according to the labour force data released by the Australian Bureau of Statistics. The Australian labor market is not as strong as recent figures suggested.

Companies News

Giant beverage firm Coca-Cola Amatil Limited (ASX:CCL) reported high earnings from its first half operations this year. It garnered some A$212.7 million from the first six months leading to the end June, improving by 12.1% in the previous corresponding year. The company's earnings before interest and tax in Australia increased by 9.6%, while the New Zealand and Indonesia operations saw earnings growth of 5% and 20% respectively on local currency bases. The company will maintain its organic growth strategy and new investments will be made in this area.

Xiaoxiao Education Limited (ASX:XXL) today announced its new acquisition of the Huayu Pre-School complex in the city of Chongqing, China. Due to officially open in September 2010, this new asset will have facilities capable of recruiting 250 children over six classes. Huayu Pre-School has already established good reputation in the local area, which can reduce the cost in its future development. Listed on the Australian Securities Exchange in February 2010, Xiaoxiao Education Limited operates highly successful childhood education businesses in China with over 4,000 enrolled students and over 500 staff. With a track record spanning 14 years, Xiaoxiao is currently expanding its operations throughout China and planning more asset acquisitions for future growth.

Australia's specialist recruiter and HR service provider Ross Human Directions Limited (ASX:RHD) reported profit growth for the year ended 20 June 2010. It achieved a total revenue of A$373.9 million. Its net profit after tax was A$6.906 million, up by 70% than FY09. The company said that the service provided by its Managed Services division has significantly improved profitability, which reflects the trend that more clients are attracted by the more sophisticated and complex HR solutions the Managed Services division provided. Whilst the Managed Services has once again been a significant contributor to the company's profit result, its Recruitment business remains a key driver of revenue.

Contact

Qiubei Fu Asia Business News Asia Bureau Tel: +61-2-9247-4344 Email: qiubei.fu@abnnewswire.net