Press Releases

Sydney, Jan 7, 2010 (ABN Newswire) - Australian stocks ended flat on Wednesday as shares gave up early gains in the afternoon dragged by banks. Miners advanced as investors were optimistic about the iron ore prices. At the close, the benchmark S&P/ASX200 index was up 1.6 points at 4925.9 points, while the broader All Ordinaries index lifted 7.7 points, or 0.15 per cent, to 4947.2 points.

Key Economic Facts and Figures

Australian building approvals rose 5.9 per cent to 13,724 units in November, seasonally adjusted, from an upwardly-revised 12,962 units in October, according to the Australian Bureau of Statistics. The result was better than market expectations despite the RBA's moves to increase interest rates and the scaling-back of the government's first home buyer grant.

The Australian Industry Group/Commonwealth Bank Performance of Services Index (PSI) fell by 2.5 points to 50.0 in December. The 50 points separates expansion and contraction. The flat result follows two previous months of expansion, reflecting uncertainties about the durability of the economic recovery and the impact of rising interest rates in the December quarter.

Australian Bureau of Statistics Thursday releases retail sales and trade balance data, both for November.

M&A News

Stonehenge Metals (ASX:SHE) will acquire Yellow Sun Mines' South Korean subsidiary, Chong Ma Mines Inc. Chong Ma holds the rights to four uranium projects comprised of 42 granted mining rights and 14 uranium mining right applications in South Korea. Consideration is comprised of 10 million Stonehenge shares plus 60 million Stonehenge performance shares with A$3 million to be spent on work commitments and purchase payments over 24 months including up to A$150k of expenses reimbursement.

Important Corporate News

Australian womenswear retailer Specialty Fashion Group Limited (ASX:SFH) has upgraded its profit guidance the first half of FY10. The company said that sales for the half year ended 31 December 2009 were A$318 million, a 11.5 per cent increase over the same period of the prior year, despite tough Christmas trading conditions. It is now expected that profit before income tax for the first half of FY10 will be within the range of A$37 million to A$39 million, up from previous expectation of profit before income tax within the range of A$24 million to A$30 million.

Ramelius Resources (ASX:RMS) has posted record production at Wattle Dam production of 19,970 ounces gold at 40.88g/t. Gold sales in December alone were A$19.9 million, exceeding gold sales for Ramelius in any previous full financial year. This result underscores the potential of Wattle Dam underground ore to deliver exceptional operating results, Ramelius said.

Genetic Technologies Limited (ASX:GTG) (NASDAQ:GENE) said it has executed an Exclusive Test Distribution and Services Agreement with Response Genetics, Inc. (NASDAQ:RGDX), under which Genetic Technologies will become the exclusive distributor in Australia, Indonesia, Malaysia, the Philippines and Thailand for Response Genetics' colon, lung and gastric genetic test panels and proprietary PCR-based molecular diagnostic tests for cancer.

Kagara (ASX:KZL) reported that the first ore production from its Lounge Lizard high grade nickel sulphide deposit thanks to a joint venture struck just eight months ago with project neighbour Western Areas. The JV with Western Areas enabled mining to start much sooner and at a lower cost than had Kagara developed the project as a standalone operation.

Westpac Banking Corp (ASX:WBC) plans to sell five-year Samurai bonds in Japan with roadshows are scheduled next week in Tokyo from Tuesday to Friday, with a possible issue thereafter. Citigroup, Daiwa Securities Capital Markets and Mizuho Securities are lead managers.

Contact

Michelle Liang Asia Business News Asia Bureau Tel: +61-2-9247-4344 Email: michelle.liang@abnnewswire.net