Australian Market Report of June 24, 2010

Sydney, June 24, 2010 AEST (ABN Newswire) - Australian shares fell for a second straight session on Thursday as investors were disappointed with the US existing home sales data and not expecting any inspiring results from new home sales. The benchmark S&P/ASX200 index lost 72.2 points, or 1.6 per cent, to 4486.1 points, while the broader All Ordinaries index was off 71.9 points, or 1.6 per cent, at 4509.4.

On the economic front on Thursday, the Conference Board releases Leading Economic Index for Australia.

On the economic front on Thursday, the Conference Board releases Leading Economic Index for Australia.

Company News

Seven Group Holdings (ASX:SVW) becomes a cornerstone investor in the forthcoming IPO of Agricultural Bank of China, one of the Big Four banks in China. The group has signed a Memorandum of Understanding and an Investment Agreement with the bank, which will be listed in Hong Kong and Shanghai in mid-July. As part of the investment agreement, Seven will invest US$250 million in the IPO of Agricultural Bank of China. The group says the investment will help the company to expand its participation in China's economic growth and support the growth of its WesTrac heavy equipment business in China.

Alinta Energy Group (ASX:AEJ) said it has received a number of indicative, non-binding, confidential bids while the power generator is in the process of the restructure of its finance facilities. These bids include bids for both whole of business and parts of the business. Shares in Alinta sharply surged on Wednesday after sources unveiled that a consortium comprising Origin Energy (ASX:ORG), APA Group (ASX:APA) and Japan's Marubeni Corp (TYO:8002) has emerged as a key bidder for Alinta. French energy giant GDF Suez (EPA:GSZ) and BHP Billiton Ltd (ASX:BHP) were also reported as possible rival bidders.

Southern Cross Electrical Engineering Ltd (ASX:SXE) said it has won the electrical and instrumentation contract for the Talc Redesign Project for Nickel West Pty Ltd, a subsidiary of BHP Billiton (ASX:BHP). The award of this contract will bring the company's order book for fiscal year 2011 to approximately A$28 million, Southern Cross said.

Newport Mining Limited (ASX:NMN) said the company has completed the acquisition of Aguia Metais Ltda, which holds two highly prospective and potentially large-scale phosphate projects located in Brazil. In addition to the two phosphate projects, Newport has a 3 year exclusivity period with the vendor of the projects, Falcon Metais Ltda, whereby if Falcon, or an associate or related corporation of Falcon, obtains an interest in a phosphate project or right to obtain an interest in a phosphate project that is wholly or partially within Brazil, such interest must be offered to Newport at the cost incurred by the party acquiring the interest.

Contact

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