Press Releases

Sydney, Dec 16, 2009 (ABN Newswire) - The Australian sharemarket Tuesday closed higher in a quiet trading day as Dubai debt fears eased. The local market was also inspired by an earlier report about energy giant Exxon's US$30 billion takeover bid of XTO and the forecasts by the Australian government commodity forecaster ABARE for iron ore and coking coal exports. At the close, the benchmark S&P/ASX200 index rose 19.5 points, or 0.4 per cent, at 4673.5, while the broader All Ordinaries gained 19.6 points, or 0.4 per cent, to 4687.8.
Key Economic Facts and Figures

Australia's total number of new dwelling commencements increased 9.4 per cent in the September quarter, after a revised fall of 1.9 per cent in the June quarter, according to the Australian Bureau of Statistics. This was the first growth in home building in a year, driven by low interest rates and a generous first home owners' grant for new properties.

The Reserve Bank released its minutes of board meeting yesterday. RBA said the most recent rate hike was "finely balanced" between positive economic developments and fears that confidence could be dented. The board's December 1 meeting decided that the cash rate would rise to 3.75 per cent from 3.5 per cent. The central bank also signaled that interest rates could be increased for a fourth straight month in February.

Today the Melbourne Institute releases its Monthly Leading Index, which is designed to predict the direction of the economy.

M&A News

Property trust GPT Group (ASX:GPT) has sold two non-core assets to reduce its exposure to the volatile tourism sector. The company said Mt Gravatt Homemaker City was sold to a private investor for A$22.4 million, while Brampton Island Resort has been sold to a private investor for A$5.9 million with settlement anticipated to be in February 2010. Earlier this week GPT sold its loss-making European Funds Management business Halverton to Internos Real Investors for just 2 Euros, after paying about $100 million for the business more than two years ago.

Amcor (ASX:AMC) has received European Commission approval to proceed with the acquisition of the European businesses of Alcan Packaging that Amcor is purchasing from Rio Tinto (ASX:RIO). A condition of this approval is Amcor agreeing to divest its Tobepal operation comprising two plants that have combined sales of approximately 110 million euros producing a range of pharmaceutical, personal care and food packaging products.

Important Corporate News

Neptune Marine Services (ASX:NMS) has won a combined services contract from ConocoPhillips Australia on the Bayu-Undan gas recycle facility in the Timor Sea. The new program of work, together with the recently announced contract awards in the UK, would contribute $15m to second-half revenue and earnings weighting guidance.

Millennium Minerals (ASX:MOY) announced mineral resource estimates for its Otways and Little Wonder gold deposits added a further 49,900 ounces to the Nullagine gold project estimate, which now stands at 28.86 Mt at 1.24 g/t Au for 1.15M ounces. Millennium CEO Brian Rear said an extensive exploration programme would start in January.

Australian mining firm Cape Lambert Resources (ASX:CFE) has cut the size of a planned initial public offering of its Q Copper unit and extended the closing date to Feb. 3 after a UK investor pulled out at the last minute. It would reduce the minimum raising to A$164.5 million through the issue of 164.5 million shares at A$1 each, down from a minimum A$203 million in its prospectus lodged on Nov. 16.

CSR Ltd (ASX:CSR) says its Sugar and Renewable Energy business will adopt the new name of Sucrogen as part of the proposed demerger. Sucrogen, which replaces the CSR Sugar brand, will be the new corporate identity which comprises CSR's market-leading positions in raw and refined sugar in Australia and New Zealand, and renewable energy in ethanol and cogeneration of electricity.