Qatnas Rises, Just Group Drops 12%

123jump.com Staff
02 Jul, 2008
New York City

Stocks in Australia fell tracking global market weakness. Mining and retailers declined. Just Group lowered its earnings 10% and cited weaker than expected consumer spending. Separately, the company rejected buy ot offer from Premier Group and its stock fell 13%. mining stocks fell as metals prices declined. Fligh engineers at Qantas suspended the strike threat nor now as its union negotiates with the airline. Australian benchmark is the fourth worst performer in Asia.

[R]3:00AM New York, 7:00PM Sydney - ASX 200 index lost 0.9% as miners and retailers fell. Just Group rejects Premier offer.

Market Sentiments

ASX 200 index shed 0.9% or 44.1 to close at 5,094.80. The preliminary market turnover was 1.69 billion, worth $6.39 billion, with 548 stocks up, 643 down and 292 unchanged. The most traded stock was Empire Oil & Gas with 53.79 million shares worth $1.39 million.

Bumi Revises Herald Offer Higher

PT Bumi Resources today extended the deadline for its offer for Herald Resources Ltd by five days to July 18 after increasing its cash offer by five cents a share to $2.85.

The improved offer now values Herald Resource at $563 million. Bumi said herald shareholders who accepted the Tango offer would receive payment within twelve days of accepting.

Bumi said its latest offer was roughly double the three-month volume weighted average price of Herald''s shares before it first launched its takeover bid in December.

Herald Resources last week declined to make a choice between its two rival bidders and left the decision to its shareholders.

Gainers & Losers

Of the ASX 200 index stocks, Futuris Corporation Limited led the gainers with a rise of 11.1% followed by increases in Connecteast Group of 8.9%, in Sino Gold Mining of 8.3%, in Australia Infrastructure Fund of 6.6% and in Babcock & Brown of 6.4%.

Of the ASX 200 index stocks, Just Group Limited led the decliners with a fall of 12.6% followed by losses in Sundance Resource of 10.6%, in AWB Limited of 8.1%, in Perilya Ltd of 6.9% and in Centro Properties of 6.4%.

Xstrata to Expand Port

Xstrata Coal, the world''s largest exporter of power-station coal today confirmed it has agreed to commence a detailed $4 million pre-feasibility study to investigate the development and operation of the proposed Port Alma Coal Exporting Terminal in Queensland, Australia. The one year long study will also assess the environmental impact.

Xstrata recently completed its review of the draft Port Alma concept report, which highlighted the possibilities of developing a coal terminal with annual capacity of at least 20 Mtpa.

Just Group Lowers Earnings

Just Group Limited lowered its pro-forma earnings per share for the fiscal 2008 to between 29.2 and 30.6 cents per share, compared to 33.4 cents.

Dr Ian Pollard, Just Group''s Chairman, said, """"Consumer spending has been weaker than was anticipated” at the previous estimate.

However, despite this and the effect on earnings, Just Group is well placed to adapt to softer or improved market conditions due to the speed and responsiveness of its supply chain, the effectiveness of its inventory management and the scale and diversity of its portfolio.

The company also rejected formal offer from Premier Group and said the offer, “Continues to materially undervalue the Company and its long term potential.""""

Just Group share shed 12.6%.

Qantas Engineers To Suspend Strike

Qantas engineers today agreed to suspend their industrial campaign ahead of the school holidays. Qantas management and the engineers union are in negotiations today over a new pay deal. Union spokesman Wayne Vasta told reporters that the workers do not want to take further action while negotiations are underway.

Qantas'' share fell 2.8%.