Press Releases

Sydney, Jan 21, 2010 (ABN Newswire) - The Australian sharemarket closed slightly higher on Wednesday. Most of the early gains boosted by BHP Billiton's report of strong half-year production were offset by the losses after news that some Chinese banks have received verbal orders to stop lending for the rest of this month. At the close, the benchmark S&P/ASX200 index added 7 points, or 0.1 per cent, at 4868.2, while the broader All Ordinaries index gained 5.5 points, or 0.1 per cent, to 4895.1.

Key Economic Facts and Figures

The Westpac-Melbourne Institute index of consumer sentiment increased by 5.6 per cent to 120.1 points in January from 113.8 points in December, after two months of declines. The confidence index is 33.6 per cent higher than a year ago.

Melbourne Institute releases report of consumer inflation expectations on Thursday. Australian Bureau of Statistics is due to unveil its new motor vehicle sales data of December, 2009.

M&A News

Adelaide Energy Ltd (ASX:ADE) said it has executed a binding Letter of Agreement with the shareholders of two private companies with respect to the acquisition of 100 per cent of the issued share capital of each of those companies. The total consideration payable for the shares for the two companies is A$2 million and the issue of 15 million ordinary fully paid shares in ADE.

Gujarat NRE Minerals(ASX:GNM) has extended its off-market takeover bid for all of the shares in Rey Resources Ltd (ASX:REY) The offer is now due to close on Friday, 19th February 2010 at 7.00pm (AEDT).

Important Corporate News

Lend Lease (ASX:LLC) has won a bid to become preferred proponent for the A$400 million first stage of the new Alkimos residential development, north of Perth. The total Alkimos development will involve 10,000 homes developed over 20 years on the coastal site 40km from the Perth CBD.

Mineral sands miner Iluka Resources (ASX:ILU) reported a drop of 37.5 per cent in sales revenue to $533 million, compared with the previous corresponding period, after currency hedging. But Iluka said sales revenue in the second half increased appreciably from the low first half level. The company also said demand for zircon was most severely impacted by the economic downturn in 2009.

Mount Gibson Iron Ltd. (ASX:MGX) said Wednesday its unaudited net profit for the six months ended Dec. 31 climbed to A$39.3 million, more than double the A$13.3 million it posted a year earlier. The profit was helped by a A$13.8 million payment from Sinom Ltd. made as part of a settlement after the Hong Kong-based commodities trader defaulted on iron ore shipments.

Country Road's (ASX:CTY) sales for the six months to 31 December 2009 rose 12.6 per cent compared to the prior first half, and like-for-like sales were up 4.5 per cent. The 6 months to end December 2009 saw a tough and competitive environment and this placed pressure on margins as we sought to compete, acting CEO Glenn Gilzean said.

Wide Bay Australia Ltd(ASX:WBB) said it expected net profit for the half year ended December 31 2009 was A$11.5 million - an 20 per cent rise over A$9.585 million for the corresponding period in 2008. Managing director Mr Ron Hancock said he was confident that the company would comfortably exceed its original forecast of an approximate 25 per cent increase in net profit for 2009/10.

Contact

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