Australian shares Monday extended the drops and hit a one-month closing low, as US President Barack Obama's plan to curb bank risk-taking raised concerns about US banks. At the close, the benchmark S&P/ASX200 index slid 32.7 points, or 0.7 per cent, at 4717.9 while the broader All Ordinaries index slipped 28.8 points, or 0.6 per cent, to 4743.1.
Key Economic Facts and Figures
The producer price index (PPI) fell 0.4 per cent in the December quarter as a result of strong Aussie dollar, according to the Australian Bureau of Statistics data. This compares with a 0.1 per cent rise in the September quarter. For the year, prices dropped 1.5 percent, the first fall in at least a decade. But economists said it was not enough to stop an official rate hike next week. The Reserve Bank of Australia is widely expected to increase rates by 25 basis points to 4.0 percent.
On Wednesday the Westpac/Melbourne Institute indexes of economic activity for November is due to release. The Australian Bureau of Statistics releases the Consumer Price Index (CPI) for December quarter.
M&A News
Venus Resources Ltd (
ASX:VNS) has signed a binding agreement with China's state-owned Shandong Provincial Bureau of Geology and Mineral Resources (SDGM). Venus will raise A$4 million through a placement at A$2 per share to HD Mining, a SDGM subsidiary. If approved, the placement would give SDGM a 6.5 per cent stake in Venus. HD Mining will spend A$8 million over a period of two years to take a 50 per cent stake in Venus' Yalgoo iron ore project in WA.
Important Corporate News
Global mining products and services provider Industrea Ltd (
ASX:IDL) said growth across mining services, diesel equipment, technology and international divisions would boost full-year revenue to A$300-330 million and deliver an adjusted net profit of A$48-54 million. Industrea said it has entered the new year on a solid growth footing, with a strong pipeline of mining services contracts and a robust order book reflecting continued growth in the key China market.
North Queensland Metals (
ASX:NQM) maintained the level of gold production in the December quarter compared with the increased level in the September quarter, with plans to lift output further in the current half year. The company said the consistent performance provides a good basis for incremental short-term improvement. It is forecasting a half year profit after tax of A$1 million.
Ausenco Limited (
ASX:AAX) said it has been awarded a US$130 million Engineering, Procurement and Construction contract to complete the Kinsevere Stage II copper project for Anvil Mining Limited (
ASX:AVM) (
TSE:AVM), after recommencing the service provision in July 2009 and refinancing a $US200 million debt and equity refinancing of Anvil in December.
Tri Origin Minerals Ltd (
ASX:TRO) said it had been admitted to the Toronto Stock Exchange (TSX) and had dual-listed its ordinary shares on the main board of the TSX under the ticker symbol (
TSE:TOR), to complement its ASX listing. This is designed to increase exposure of the company and its projects to North American investors, says the company.
Contact
Michelle Liang
ABN Newswire
TEL: 61-2-9247-4344
Related CompaniesVenus Metals Corporation Limited
Tri Origin Minerals Ltd
North Queensland Metals Limited
Industrea Limited
Ausenco Limited
Anvil Mining Limited