Australian Market Report of July 20, 2010

Sydney, July 20, 2010 AEST (ABN Newswire) - The Australian market opened slightly higher on Tuesday. Wall Street posted modest gains overnight as investors focused on the company earnings reports and shrugged off the weak housing data.

Today Australia's S&P/ASX200 Index was up 5 points, or 0.11 per cent, at 4363.3 points, while the broader All Ordinaries advanced 0.10 per cent, at 4,377.20 points.

On the economic front, Reserve Bank of Australia (RBA) is due to release minutes for July 6 board meeting. RBA governor Glenn Stevens is to deliver a speech titled "Some Long-Run Effects of the Financial Crisis" at the Anika Foundation Luncheon in Sydney.

Company News

Diversified telecommunications services provider M2 Telecommunications Group Ltd (ASX:MTU) today reaffirmed its fiscal year 2010 guidance and delivered a strong earnings growth guidance for full year 2011. The company expects its net profit after tax (NPAT) for FY11 in the range of A$25.2 million to A$26.7 million, 52 per cent up from the FY10 guidance of A$14.5 million to A$15.5 million. M2 says the FY11 guidance affirms board and management confidence in the benefits arising from the successful integration of its People Telecom and Commander acquisitions, the anticipated successful implementation of recently announced bolt-on acquisitions and the outcomes of a concerted internal consolidation and business-wide drive.

St Barbara Limited (ASX:SBM) said today that consolidated gold production for FY10 was 231,018 ounces, exceeding guidance of 220,000 to 230,000 ounces. The company's consolidated operating costs for FY10 of A$790 per ounce was at the lower end of published guidance in the range of A$85 million to A$95 million. An average gold price of A$1,387 per ounce was realised for gold shipped in the June quarter and the average price for the year was A$1,244 per ounce.

Paladin Energy (ASX:PDN) said it is currently undertaking due diligence on NGM Resources Limited (ASX:NGM) and is negotiating with the board of NGM on a potential takeover bid. Paladin said the board has not made a decision on this matter. NGM Resources yesterday requested a trading halt and said it is pending release of an announcement about a material transaction.

Airport owner MAp Group (ASX:MAP) saw a solid traffic growth in June across its portfolio, with the strongest performance at Sydney Airport. Total traffic at Sydney Airport in June was up 13.2 per cent on the previous corresponding period, reflecting the ongoing strength of both domestic and international traffic, MAp said. This is driven by a strong outbound market as well as growth from the US, New Zealand and Asian inbound markets, particularly China and Korea. Copenhagen Airport posted 9.3 per cent growth in total passenger traffic on the previous corresponding period, with domestic traffic up 23.6 per cent. Brussels Airport's total passenger traffic was up 1.6 per cent on the previous corresponding period, mainly due to good performance from long haul carriers.

Contact

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