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Distributed: Sep 30, 2009

Australian Market Report of September 30: US Consumer Confidence Dropped

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ANZ (ASX:ANZ)

ANZ (ASX:ANZ) became the first global financial institution to sign an agency agreement with state-owned China Development Bank (CDB) to help the Chinese giant build A$25 billion portfolio of Australian assets by the end of the year. The memorandum of understanding will involve the Australian bank bringing deals to CDB for financing and acting as its agent in Australia, New Zealand and other parts of Asia.

Sydney, Sep 30, 2009 (ABN Newswire) - Wall Street closed lower overnight after American consumer confidence reading in September dropped unexpectedly. The weakness in US technology stocks, which had been a leader for much of Wall Street's six-month rally, yesterday led a fall in the market. The Conference Board's consumer confidence index dipped in September to 53.1 from 54.5 in August as people worries about job market.

The Australian share market posted solid gains across the board on the strong lead from US. The benchmark S&P/ASX200 index rose 75.7 points, or 1.62 per cent, at 4753.1, while the broader All Ordinaries gained 70.3 points, or 1.5 per cent, to 4747.2.

Key Economic Facts and Figures

The RBA's head of economic analysis, Tony Richards, warned that the housing prices would begin to rise as demand from potential buyers outweighs the supply of new home. Housing affordability could be under pressure as RBA is likely to increase its interest rate within the next two month.

The Productivity Commission today releases its report on executive remuneration, and the Reserve Bank of Australia issues its financial aggregates data for August. The Australian Bureau of Statistics retail trade data for August and ABS building approvals data for August will be released.

M&A News

The Global Airports (GAp) has abandoned its bid to take over the management rights of Macquarie Airports (ASX:MAP) last night, after it lost a short-lived legal battle in the NSW Supreme Court to try to prevent today's vote from going ahead. Investors in Macquarie Airports are today expected to vote in favour of the $345 million deal to sever its management ties with Macquarie Group (ASX:MQG).

Important Corporate News

Flight Centre (ASX:LYC) said its trading results for the first two months of this financial year have been encouraging, despite the company has not seen conclusive evidence of a full recovery. The group posted a 72 per cent slide in annual profit to A$38.2 million for the year to June 30. Flight Centre said it expected a pre-tax profit of between A$125 million and A$135 million for 2009-10.

Qantas (ASX:QAN) has reported the number of passengers was 6 per cent higher in August than same period last year, thanks to the heavy discount tickets. But the domestic passenger yield and international yield for the first two months of this financial year fell 12.8 per cent and 22.9 per cent respectively, when compared with the same period last year.

ANZ (ASX:ANZ) became the first global financial institution to sign an agency agreement with state-owned China Development Bank (CDB) to help the Chinese giant build A$25 billion portfolio of Australian assets by the end of the year. The memorandum of understanding will involve the Australian bank bringing deals to CDB for financing and acting as its agent in Australia, New Zealand and other parts of Asia.

Lynas Corporation (ASX:LYC) has announced a fully underwritten A$450 million rights issue to fund its West Australian rare earths development after the foreign investment regulator rejected the A$500 million investment by China Nonferrous Metal Mining Co.

Viterra Inc. (TSE:VT) confirmed that its subsidiary ABB Grain (ASX:ABB) has received approval of its port access undertaking by the Australian Competition & Consumer Commission (ACCC). ACCC approved undertakings by the nation's three major grain export terminal operators covering access to their port facilities. The other two companies benefit from the approval are Cooperative Bulk Handling Ltd. and GrainCorp Ltd. (ASX:GNC).

Fortescue Metals Group (ASX:FMG) failed to meet the September 30 deadline of finalising a US$6 billion funding deal with Chinese banks. Fortescue had agreed to sell all of its second-half production to the Chinese steel makers at a 35 per cent discount to last year's prices in return for the Chinese funding. Analysts had widely expected the Pilbara miner would announce an extension to negotiations today.