[R]3:00AM New York, 7:00PM Sydney - ASX 200 index rose 2.4% after gains in financial on the back of the Federal Reserve Bank in the U.S. led liquidity injection plan in the global credit markets.[/R]

Market Sentiment

ASX 200 index gained 2.4% or 123.7 to close at 5,257.90

The preliminary market turnover was 1.71 billion worth $7.16 billion, with 856 stocks trading up, 400 trading down and 291 unchanged. The most traded stock by share volume was Empire Oil & Gas with 73.49 million shares worth $1.08 million.

Market Driver

Australia & New Zealand Banking Group chief executive Mike Smith warned that banks may be forced to add to three interest rate increases this year as they seek to recoup higher wholesale funding costs.

He said all banks will have to adjust rates if the funding costs continue to increase. All major banks including ANZ have increased their rates above those of the central bank even as it pushes rates to a 12-year high, seeking to mitigate rising global credit costs. The move has put pressure on households in a nation where mortgage payments are already rising at least 2 1/2 times faster than incomes.

ANZ and St. George Bank Ltd lifted rates by 35 basis points yesterday. That takes their increases this year to 80 basis points, compared with an average of 75 basis points for Australia''s top five banks.

ANZ share rose 5.8%.

Gainers and losers

Of the ASX 200 index stocks, City Pacific Ltd led the gainers with a surge of 45.6% followed by increases in Babcock & Brown of 12.2%, in Sundance Resource of 11.8%, in Timbercorp Limited of 11.7%, and in St George Bank of 7.5%.

Of the ASX 200 index stocks, Compass Resource led the decliners with a fall of 9.6% followed by losses in AED Oil Ltd of 6.6%, in Hills Industries of 6.2%, in APN/UKA European of 4.8% and in Macquarie Office of 4.6%.

Macquarie Media to divest from Taiwan Broadband Communications

Macquarie Media Group today entered into an agreement to divest its 60% economic interest in Taiwan Broadband Communications to Macquarie Korea Opportunities Fund for approximately $400 million.

The sale price is equivalent to $1.87 per stapled security. Macquarie Media said Macquarie Korea has already secured all necessary investor approvals for the transaction, and is expected to complete in the June 2008 quarter subject to regulatory approvals in Taiwan.

Macquarie Media said the sale has been approved by its Independent Directors who have received independent financial and other advice, including advice that the sale price is fair and reasonable to MMG''s external investors.

The Independent Directors have concluded that the sale has been conducted on arm''s length terms. The price is in line with recent comparable transactions in the sector.

Macquarie Media''s share was up 3.7%.

Asciano reaffirms last week''s-unaudited results

Transport infrastructure firm Asciano Group Ltd has affirmed its financial results for the first half of 2007/08 in audited figures released today.