Press Releases

Sydney, May 17, 2010 (ABN Newswire) - The Australian stock market opened sharply lower on Monday led by material sector. European bourses broadly tumbled on Friday as European governments' deep spending cuts increased worries over the region's economies. The negative sentiment also spreads through Wall Street and Asian Markets. The Australia's S&P/ASX200 index Monday fell approximately 1.8 per cent in early trade. In economics news today, the Australian Bureau of Statistics releases lending finance data for March.

Company News
Kagara Ltd (ASX:KZL) said the Chinese Government has approved a A$23.8 million cornerstone investment by Guangdong Foreign Trade Group (GFTG) in the Mungana Goldmines IPO. GFTG, a 19.8 per cent stake holder in Kagara, has committed to taking a 16 per cent interest in the new company, which is currently raising A$76 million through an issue of 80 million shares at a price of A$0.95 per share. The float will give Mungana Goldmines a market capitalisation of A$150 million. Kagara said the approval highlighted Mungana's potential, while only quality assets and strong growth prospects will secure investor support in the face to uncertainty generated by government's resources tax.

Leighton Holdings (ASX:LEI) today reported an unaudited profit after tax of A$400 million for the nine months to March 31 2010, compared to a profit after tax of A$220 million in the corresponding period last year. The company said its diversification strategy has helped sustain the business through the worst of the global financial crisis. The result reflects solid performances infrastructure and resources, offsetting the difficulties in property and the Middle East - particularly Dubai. Leighton expects to report full year revenue of around of A$18.5 billion and net profit after tax in excess of A$600 million.

Goodman Group (ASX:GMG) and the Canada Pension Plan Investment Board (CPPIB) have expanded their relationship through the establishment of a new fund, the Goodman Australia Development Fund. The fund will have an initial equity commitment of A$250 million with a target gross asset value of approximately A$400 million. CPPIB will hold 80 per cent shares in the new fund, which will focus on acquiring a range of high quality pre-committed development opportunities in Australia. The fund will be seeded through the acquisition of the 76,000 sqm distribution centre currently being developed for Kmart in Melbourne.

Myer Holdings (ASX:MYR) Monday reported total sales for the third quarter to April 24 of A$671 million, up 0.3 per cent from the previous corresponding period. The department store anticipates that trading in the fourth quarter will be challenging until the full impact of the government stimulus has passed. But Myer reaffirmed its full year guidance for sales growth of 1 per cent to 2 per cent to between A$3.193 and A$3.326 billion, and EBIT growth of 10.7 per cent to A$261 million.

Contact

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