Australian Market Report of April 28, 2010: Shares Suffer from European Jitters

Asian markets this morning sharply plunged following the massive drop in US shares. Australian stock market shed 1.7 per cent in early trade, while Japan's Nikkei gave up more than 300 points, or 2.8 per cent. Asian shares fell on Standard & Poor's ratings downgrades of Portugal and Greece and worries that the debt problem of the two nations could put the recovery in Europe under pressure.

Yesterday most Asian markets declined, with Shanghai and Hong Kong shares continued to be hit by fears of Chinese government's measures to cool the property market. Australian shares Tuesday ended nearly unchanged in a quiet session. Today the focus of local economic news would be consumer price index for March quarter released by Australian Bureau of Statistics.

Company News

D'Aguilar Gold (ASX:DGR) has entered an agreement for its subsidiary Navaho Gold Pty Ltd to acquire Mingoola Gold Pty Ltd in exchange for seven million shares and seven million options in Navaho and D'Aguilar's commitment to arrange initial funding of A$610,000 seed capital. D'Aguilar will continue to hold a majority equity stake in Navaho Gold, and assist with its corporate and project development plans. Mingoola will appoint two nominees to the new Navaho board which will include two nominees from D'Aguilar.

Centrex Metals Limited (ASX:CXM) said it has signed a Supplementary Agreement with Wuhan Iron and Steel (Group) Co. (WISCO) for its Eyre Peninsula iron ore joint venture and that all conditions precedent for the deal have now been fulfilled. WISCO will take a 60 per cent interest in the iron ore rights to five of Centrex's exploration tenements on the Eyre Peninsula, South Australia. Centrex also signed a Heads of Agreement with WISCO to develop its Sheep Hill Port Facility located on the Eyre Peninsula. Each party will take a 50 per cent share in the new incorporated ports company.

Whitehaven Coal (ASX:WHC) reported that its saleable coal production (100 per cent basis) for the March quarter was 0.963 million tonnes, up 10 per cent from 0.876 million tonnes a year earlier. Coal sales in the March quarter were 1.2 Mt (100 per cent basis), up 4 per cent on the previous corresponding period. Whitehaven also said construction of its Narrabri mine progressed well during the quarter. The new NCIG coal export terminal at Newcastle, of which Whitehaven owns 11 per cent, shipped its first coal in late March and is now ramping up capacity.


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


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