Australian Market Report of July 9, 2010
Australian Market Report of July 9, 2010

Sydney, July 9, 2010 AEST (ABN Newswire) - Australian shares rallied on Thursday after a strong lead from overseas market, and the gains were fuelled by the better-than-expected employment data in Australia. Total employment was up by 45,900 in June, compared to expectations of an increase of 15,000. Australia's unemployment rate in June was a seasonally adjusted 5.1 per cent, beating the economists' prediction of 5.2 per cent.

At the close, the benchmark S&P/ASX200 index surged 102.1 points, or 2.4 per cent, at 4356.7, while the broader All Ordinaries index climbed 96.2 points, or 2.2 per cent, to 4374.

Company News

Australian drilling service provider AJ Lucas Group Limited (googlechartASX:AJL) said it has entered into a joint venture with Xtreme Coil Drilling Corp (googlechartTSE:XDC), a North American drilling company with operations in the US, Mexico and Saudi Arabia, to deliver innovative drilling methodologies to the Australian coal seam gas industry.

Orica Limited (googlechartASX:ORI) said its shareholders have approved to spin off DuluxGroup Limited (googlechartASX:DLX) from the company with 99 per cent of votes in favour of the demerger plan. Orica shareholders will be issued with one DuluxGroup share each Orica share that they hold on the record date and DuluxGroup will become an independent company listed on the ASX. DuluxGroup is expected to begin trading on the ASX on a deferred settlement basis next Monday, pending court approval. DuluxGroup plans to maintain its focus on paint and home improvement products, while Orica aims to grow its core mining and infrastructure businesses. The demerger would enable each company to focus more on its individual strategy, growth plans and core operations, Orica says.

Greenland Minerals and Energy Ltd (googlechartASX:GGG) said it has secured A$21 million to finance ongoing feasibility and development programs on the Kvanefjeld multi-element (rare earth, elements, zinc and uranium) project. The funds have been secured through a A$6 million equity placement to sophisticated and overseas institutional investors, as well as a A$15 million equity facility with US-based YA Global Investments. The company says the equity facility provides an additional funding option and longer-term financial security.

Building materials company Boral (googlechartASX:BLD) said on Thursday that it has raised A$274 million from institutional investors to boost the company's financial position as it seeks to expand its building materials business. Boral is aiming to raise a total of $490 million from shareholders, with the retail component of the offer to start on July 15, and closing on July 30.


Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344

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