[R]3:00AM New York, 7:00PM Sydney – Australian stocks gained as financial sector surged on investors’ willingness to support Lehman and UBS capital offering.[/R]

Market Sentiments

ASX 200 index gained 2.6% or 141.7 to close at 5,502.90.

The Preliminary market turnover was 1.95 billion, worth $6.84 billion, with 688 stocks up, 513 down and 315 unchanged. The most traded stock was Newsat with 116 million shares worth $351,539 changed hands.

Market Driver

Financial stocks rallied after U.S. financial and brokerage stocks recovered and banks in Europe traded higher. Investors appear to be relieved after two troubled banks Lehman and UBS appear to attract investment but previous rallies on the back of investments in Merrill Lynch, Citigroup, and UBS has failed to sustain.

Australia''s largest investment bank, Macquarie Group Ltd surged 10% after Lehman Brothers and UBS announced their plans to raise $4 billion and $15 billion respectively.

Australia''s biggest bank by assets, National Australia Bank Ltd added 5.2% following a 23% loss this year while Commonwealth Bank of Australia gained 4.4% and the ASX 200''s financial index rose 4.5%. ANZ added 5% and Westpac was up 6.5%.

Gainers and losers

Of the ASX 200 index stocks, Allco Finance Group led the gainers with a rise of 17.4% followed by increases in Arrow Energy Ltd of 11.4%, in Macquarie DDR TR of 10.2%, in Macquarie Group of 10% and in Western Areas NL of 8.5%.

Of the ASX 200 index stocks, Sino Gold Mining led the decliners with a fall of 6.9% followed by losses in Great Southern of 5.5%, in Equinox Mine CDI of 5.3%, in Mincor Resources of 5.2% and in Newcrest Mining of 4.9%.

Melewar announce injunction on ANZ Nominees

Australian iron ore company, Gindalbie Metals Limited today announced that its biggest shareholder, Malaysian-based Melewar Steel ventures Ltd''s lawyers, Slater & Gordon have confirmed that an injunction has been placed on ANZ Nominees Limited, Australia and New Zealand Banking Group Limited and Opes Prime Stock Broking Limited restricting the sale of approximately 32 million shares the subject of dispute with Melewar.

The injunction is in place until 4.00pm on 10 April 2008. The matter would be heard again in the Supreme Court on the April 10. Melewar was under pressure to sell more than a third of its stake after the collapse of a broker.

Melewar was being forced to sell 32 million shares, or 6.2% of Gindalbie, which it had pledged against an outstanding loan from the broker, by the receiver of Opes Prime Stockbroking Ltd.

Melewar also wants to keep its remaining 7.6% stake, which isn''t subject to any pledge, while ownership of a further 0.6% stake is unclear.

The Australian Securities and Investments Commission has appointed Deloitte Touche Tohmatsu as receivers and Ferrier Hodgson as external manager to institute an inquiry into Opes Prime last week.

Opes Prime directors called in Ferrier Hodgson after they became aware of cash and stock movement irregularities, Deloitte said in a statement on March 28. Gindalbie rose 8.4%.

De Grey''s surges on iron ore license

Australian minerals explorer, De Grey Mining Limited''s stock gained 36% today after winning an iron ore exploration license in Western Australia''s Pilbara region.