The Australian market yesterday experienced its worst day in a year with a massive 3.1 per cent drop, wiping off more than A$40 billion value from the local market. Asian shares also saw broad sell-off on Monday due to the lingering euro zone debt issue. After flat lead from Wall Street, the Australian share market rose slightly at opening on Tuesday and soon moved back to negative territory.
On economics front today, The Reserve Bank of Australia is due to unveil the minutes of its May 4 monetary policy meeting. The Housing Industry Association (HIA) releases its March quarter Affordability Reports.
Company News
Fox Resources Limited (
ASX:FXR) said its two largest shareholders, Jungle Creek Gold Mines and Jinchuan Group, have both stated that they will take up their entitlement in full under the right issue announced on April 23. Their combined shareholding represents approximately 27.2 per cent of the company's issued shares. The proceeds of the offer will be used primarily to fund the next stage in the development of the company's heap leaching operation at Radio Hill in the Pilbara of Western Australia.
Bradken Limited (
ASX:BKN) said it has entered into agreement to acquire the business assets of Canada-based Almac Machine Works for C$47.5 million. In addition, a maximum earn-out of C$4.8 million is payable subject to calendar year 2010 performance of the Almac business. The acquisition will be funded through a fully underwritten institutional placement of A$50 million. Bradken has upgraded its guidance with FY10 EBITDA now expected to be in line with, instead of slightly below, the figure of FY09. The company said its rail division is expected to deliver a strong performance through continued productivity improvements at the Xuzhou operations in China as well as ongoing purchasing gains, and all other divisions continue to improve in line with expectations.
New Zealand retailer The Warehouse Group (
ASX:WHS) (
NZE:WHS) reported that sales for the third quarter ended May 2 was NZ$376 million, down 1.9 per cent on the corresponding period last year. The sales drop compared to last year was almost entirely due to a continued contraction in the music and DVD market as well as a very slow start to winter, with unseasonably warm weather affecting key categories such as winter apparel and heating. But Directors are confident that the adjusted net profit after tax (NPAT) for the full year will be similar to adjusted NPAT for FY09.
Contact
Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net
Related CompaniesWarehouse Group Limited (the)
Fox Resources Limited
Bradken Limited