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Australian Market Report of June 30, 2010
Australian Market Report of June 30, 2010
Sydney, June 30, 2010 AEST (ABN Newswire) - The Australian shares Tuesday posted losses for the sixth consecutive day as Asian markets were widely lower. Chinese market dropped more than 4 per cent due to a massive sell-off after the Agricultural Bank of China offered a lower-than-expected price in its Shanghai tranche IPO. Investors feared that this could be a signal of slow-down in fresh investment into Chinese equities.

At the close, the benchmark S&P/ASX 200 Index was down 38.8 points, or 0.9 per cent, to 4345.7, while the broader All Ordinaries index fell 39.1 points, or 0.9 per cent, to 4370.6.

In economics news Wednesday, Housing Industry Association will release its report on new home sales. The Reserve bank of Australia will publish data on private sector credit.

Company News

Campbell Brothers (ASX:CPB) expects underlying net profit after tax for the half year ending 30th September 2010 will be within the range of A$63 million to A$68 million as it sees continued strong demand for its mineral, environmental and coal analytical services.The guidance compares very favourably to the actual net profit after tax of A$38 million for the half year to September 2009 and is also ahead of the record result of A$57 million achieved in the half year to September 2008 prior to the global financial crisis, the company says. This reflects current strong trading condition for the majority of the company's operation and a solid contribution from Ecowise and PearlStreet, acquired in the second half of last year.

Boom Logistics Limited (ASX:BOL) concluded that Archer Capital's offer to acquire Boom at an indicative price of A$0.52 per share undervalues the company, after the board of Boom assessed the Archer proposal. Boom received a highly conditional, confidential and incomplete proposal from Archer to buy the company through a scheme of arrangement. Boom said the Archer proposal has been timed to coincide with the end of a post global financial crisis downturn in the industrial services sector, while Boom has experienced improving business conditions during the last quarter and with strong industry growth outlook it expects the improvement will continue into FY11 and beyond.

Engineering group Downer EDI Ltd (ASX:DOW) said it has ample liquidity with in excess of A$600 million in available facilities and cash balances in response to media reports the company has ordered payments to be withheld to meet cashflow targets for its end-of-year financial accounts. Downer also said its Works Australia division expected to pay all creditors as per agreed creditor terms while meeting its internal cash targets.

Contact

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


Related Companies

Downer EDI Limited        
Campbell Brothers Limited       
Boom Logistics Limited       

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