Gunns

ANZ confirmed that it has finally pulled out from the Gunns deal. It had been under pressure from the conservationist for not funding the $2 billion Tasmanian pulp mill project. ANZ did not give any reason for pulling out of the deal and the Tasmanian government also refuses to comment on ANZ’s refusal. However, the Deputy Leader of Opposition states this refusal as only a minor hiccup. The Federal Environment minister Peter Garrett states that financing such a project is entirely a matter for the Gunns and not the Federal government.

Gunns (GNS) was the best performing shares on the ASX 200 index this week (Winner of the week for week 40 of 2007). The timber company found it shares jump 30.8 percent or 86 cents closing at $3.65 after the Gunns pulp mill in Tasmania was approved. Other winners on the ASX 200 index were B&B Power (+9.7%, $3.16), Straits Resources (+9.7%, $5.10), Iress Market Technology (+8.3%, $8.45), MFS (+8.3%, $5.08) and Energy Developments (+8.2%, $3.42). The Australian dollar closed the week at US88.90 cents, gold at 736.35, All Ordinaries at 6617.3 and ASX 200 at 6605.4. Gunns was previously a loser of the week in September last year.

SP Ausnet (SPN) was the overall worst performing stock taking in a 10.71 percent decrease. It was a mixture of financial services, healthcare, energy and forest products companies who were among the worst performing stocks for the week 38 of 2007 on the Australian sharemarket: Bendigo Bank (BEN), Ansell (ANN), Sigma Pharmaceutical (SIP), SP Ausnet (SPN), Adelaide Bank (ADB), Gunns (GNS). These worst performing stocks for the week 38 recorded losses above 6.08 percent by the end of the trading week.

It was the mixture of project development, boardsport manufacturing, developers and operators of toll roads, hardwood forest products, power generation and mining companies who were among the best performing stocks for the week 40 of 2007 on the Australian sharemarket: Leighton Holdings (LEI), Billabong International (BBG), Macquarie Infrastructure (MIG), Gunns (GNS), Babcock & Brown Power (BBP), Straits Resources (SRL). These best performing stocks managed gains over 5.76 percent by the end of the trading week.

The worst performing company this week on the ASX was Gunns (GNS) (Loser of the week for week 38 of 2006). The Tasmanian woodchip company, fell 12 per cent this week.