Sydney, Oct 16, 2007 (ABN Newswire) - Australian shares fell on Tuesday, with property and financial firms and the major banks leading declines on fresh concerns about credit markets after Citigroup posted a 57% drop in third quarter profit overnight in the U.S.

At Midday the S&P/ASX200 index has fallen 77 points to 6,662and on the futures market the SPI 200's down 96.

In company news this hour, Energy Resources of Australia reported this morning that production of uranium oxide in the third quarter of 2007 was 24 per cent higher than the third quarter of 2006. The miner also said that while the ore mined was 27 per cent lower than in the third quarter of 2006 the ore grade was significantly higher, contributing to the strong uranium oxide result. Energy Resources also said that Pit 3 would be cleared of water by November from dramatic rain falls in February, restoring production to normal levels in 2008. Energy Resources of Australia shares are 2.96% lower at $19.00.

The full report is available at the following video and audio links.

Video Link

http://abnnewswire.net/fnnlnk/3UVC63W3


Audio Link

http://abnnewswire.net/lnk/O9JMQQXB


Babcock & Brown Limited announced that the company will sell 48.9% of its US regional shopping mall portfolio to Oxford Properties Group. However, the investment bank's joint venture with the GPT Group will keep ownership of 51% of the portfolio. Babcock & Brown chief executive, Phil Green, said the sale reflects the bank's ongoing ability to recycle assets despite the current volatility in global capital markets and reflects the attractive and strategic profile of the portfolio. Babcock & Brown shares are 2.18% lower at $27.39.

Now let's have a look at warrants from Macquarie Bank. Value players have helped stem yesterday's heavy selling in AGL Energy after management downgraded earnings guidance. Traders believing yesterday's selling was overdone bought long exposure through AGKIMG Nov07 $12.00 Instalment and AGKIMD May08 $13.00 Instalment.

Publishing and Broadcasting shares have also recovered from yesterday's weakness after proposed changes to tax laws forced the company to delay demerger plans. Traders that bought during yesterday's weakness closed out positions for a profit through PBLIMG Nov07 $15.50 Instalment.

Anti-financials sentiment has seen the top banks slump in trade today as investors take recent gains off the table. Warrant traders prompted by the dip National Australia Bank bought upside leveraging to a bounce through NABWMO Jan08 $45.00 Call.

Turning now to market indices. And all the major indices were down this morning. The index posting the smallest loss by percentage points is the Energy index, 5 points lower at 16,090. Shares in Nexus Energy are up 4.50% to $1.51, while Roc Oil and Caspian Oil & Gas are also higher.

The index with the biggest loss by percentage points is the Property Trust index, down 44 points to 2,429. Centro Property shares are down 3.02% to $7.72. GPT Group and CFS Retail shares have also lost ground.

In Tokyo, the Nikkei is down 164 and in New Zealand the NZSX50 is down 17.

Gold is currently trading at $757.20 U.S an ounce and one Australian dollar's buying 89.83 U.S cents.


Source: Finance News Network © 2007 http://www.finnewsnetwork.com.au

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