Australian Market Report of May 5, 2010: ASF (ASX:AFA) and China Coal to Jointly Explore Tasmanian Tenements

Australian shares fell significantly this morning after the US and European markets shed on concerns over the euro zone's ability to contain its debt crisis. The S&P/ASX 200 index lost nearly 2 per cent shortly after the market opened. On economic news front, today Australian Industry Group releases performance of service index for April, while Australian Bureau of Statistics publishes building approvals data for March.

Company News

ASF Group Limited (ASX:AFA) said its wholly owned subsidiary, ASF Resources Pty Ltd, has entered into conditional cooperative agreements with China Coal Geology Engineering Corporation on 26 April for the exploration of mineral tenements in Tasmania. Under the agreement, China Coal will become wholly responsible for funding the exploration programs on the tenements which are prospective for base metals, tin and other minerals. A project company will be established and ASF Resources will transfer the tenements to the project company.

Westpac Group (ASX:WBC) reported cash earnings of A$2,983 million for the half year ended March 31, up 30 per cent compared to the corresponding period a year earlier. Statutory net profit after tax increased 32 per cent to A$2,875 million. The bank says the result reflects a much improved Australian economy and good momentum across all its business. But it remains cautious as it expects the effects of the global financial crisis to linger for many years, with recent issues in Europe have highlighted the fragile nature of the recovery in some global markets.

Perseus Mining Limited (ASX:PRU) (TSE:PRU) said today that it has completed its offering of 50.6 million ordinary shares at a price of C$1.8 per share for aggregate gross proceeds of C$91.08 million. Subject to shareholder approval, the company also intends to complete a private placement, outside of Canada, principally in Australia, of up to 15 million ordinary shares on a best-efforts basis at a price of A$1.94 per share for up to $A29.1 million. Perseus also intends to undertake a share purchase plan to offer up to 7 million ordinary shares at $A1.94 per share for up to $A13.5 million. Proceeds from the capital raising will be used to fund ongoing exploration and development of gold properties in West Africa and for general working capital purposes.

News Corporation (ASX:NWS) today reported that net income for quarter ended March 31, 2010 was US$839 million, helped by particularly strong earnings growth at the Filmed Entertainment, Cable Network Programming, and Newspapers and Information Services segments. The company's Filmed Entertainment division delivered a 76 per cent increase in segment operating income to US$497 million, boosted by the theatrical performance of its 3D movie "Avatar", the highest grossing film of all time with total worldwide box office receipt of over US$2.7 billion. News Corp chairman and chief executive Rupert Murdoch said the earnings result confirmed "no content company is stronger than News Corporation at building both fiscal and operational momentum".


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