Australian Markets, Winners & Losers

The collapse of the planned merger of Rio Tinto (RIO) and Chinalco worth up to $19.5 billion on June 5 2009, has been accepted by the Chinese government as a failure that was beyond their control. The report to the State Council exonerates the resources company and the Australian government and accepts that ordinary economic forces halted the largest Chinese foreign investment deal.

Mirvac Group (MGR) , a company that operates real estate business in residential and non-residential projects and involved in Real Estate Fund management was the worst performer of the ASX100 list for the 10th week of 2010. The company lost 6 percent or 10 cents to its stock price and was closed for the week at $1.48 (market capitalisation of $4436.9 million).

Arrow Energy (AOE), one of the renowned coal seam gas producer and explorer of Australia with a current market capitalisation of over AUS$2 billion with resources in south and central Queensland and northern New South Wales was at the number winning company of the 10th week in ASX100 with a gain of 49.4 percent or $1.72 to its stock price closing the week at $5.20 (market capitalisation $3808.4 million).

Oroton (ORL), an upmarket Australian fashion house, has found that even during the global financial crisis, women were still in the market for pricey upmarket handbags and accessories. Sally Macdonald, the Oroton Chief Executive joined Oroton Group in September 2006 when the company reported a $9.4 million loss a result of high costs, underperforming brands and a string of dud acquisition deals under the leadership of controlling shareholders the Lane family.

Myer (MYR) has warned that sales for Australia's largest department store chain maybe flat as consumers no longer have the free government bonus handout cash to spend. The company had beaten forecasts and reported a 38 percent rise in their first half underlying profit due mainly to cost cutting and through selling higher margin private label products.

Orica (ORI), the fertiliser and explosives company have lost a court dispute over a large capital gains tax bill from the sale of its pharmaceuticals business over a decade ago in 1998. The company may be forced to pay the $126 million tax bill, but the company has the opportunity to appeal against the decision of Federal Court judge Ross Sundberg. Assuming the decision stands, then in the year that Orica pays the balance of the tax bill its reported net profit will be down $192 million.

Qantas yields are turning around its decline - with the average air fare price bottoming out last year. However, the Airline's monthly traffic figures show domestic yields for the first seven months of the current financial year are 6 percent less than the rquivalent period last year for Qantas and subsidiary - Jetstar. International yields for the airline group are 20 percent lower compared to last year.

Qantas (QAN) currently has troubles in two areas via two partially owned companies: Jetset Travelworld (JET) and Air Pacific. Qantas owns 46 percent of Air Pacific while they own 58 percent of JET after a merger of Qantas Holidays and Qantas Business Travel with Jetset which created Australia's largest listed travel agency franchise.

BlueScope Steel (BSL), a renowned investor in the steel industry that concentrates in Europe, North America and Asia Pacific was the best performer of the 8th week in ASX100 with a gain of 10.3 percent or 25 cents closing the week at $2.67.

Spark infrastructure Group (SKI), one of the leading infrastructure investment company with a market capitalisation of $1284.7 million was the worst performer in the ASX100 list for the 8th week. The company lost 12.3 percent or 18 cents to its stock price and was closed for the week at $1.25.