Press Releases

Sydney, May 24, 2010 (ABN Newswire) - The Australian shares opened slightly higher today while bargain hunting Friday helped Wall Street snap the losing streak. Today both the S&P/ASX200 index and All Ordinaries index gained more than 0.8 per cent shortly after the market opened.

The Local market experienced a roller coaster day on Friday with a 3 per cent drop at opening and a dramatic intra-day turnaround. It was only 0.25 per cent lower at the close. For the week, the S&P/ASX200 index lost 6.63 per cent while the market was hammered by the Europe debt issues.

In economics news, the Australian Bureau of Statistics publishes new motor vehicle sales data for April.

Company News

Eastern Star Gas Limited (ASX:ESG) has entered into an Memorandum of Understanding (MOU) with Hitachi Ltd (TYO:6501), Industrial & Social Infrastructure Systems Company and Toyo Engineering Corporation (TYO:6330). Eastern Star says the MOU, signed last Friday in Tokyo, paves the way for a feasibility study into development of a liquefied natural gas export project, using electric motor drives at Newcastle, NSW. The feasibility study will seek to confirm the viability of an LNG export project at Newcastle using Hitachi/Toyo's mid-scale electric motor driven technology.

Brockman Resources Limited (ASX:BRM) today said in a statement that both its strategic relationship with Sinosteel and development of its flagship Pilbara iron ore project remain on track, in response to media report that there had been a change the miner's strategic relationship with the Chinese partner due to the uncertainty created by the Australian government's proposed Resources Super Profit Tax (RSPT). Brockman recently signed a Memorandum of Understanding with Sinosteel encompassing the purchase of maximum of 10Mtpa of iron ore production over an initial 5-year off-take period from Marillana iron ore project and consideration of strategic investment options in the project.

Gunns Ltd (ASX:GNS) has agreed to sell its hardware retail business to John Danks & Son for an amount of A$40 million subject to completion adjustments. The transaction involves the sale five hardware stores in Tasmania, one timber joinery centre, one truss manufacturing plant and a support office. Danks will also make offers to retain all employees of the Gunns business. Danks is a wholly owned business of the home improvement joint venture between Woolworths Limited (ASX:WOW) and Lowe's Companies Inc (NYSE:LOW).

Contact

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