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Friday, March 12, 2010
Indian Indices to open higher; IIP data eyed
Headlines for the day
Fortis buys 24% in Singapore healthcare giant
Bosch may declare lockout at Bangalore plant, too
Titan launches North India's largest showroom
Events for the day
Major corporate action
Ex-date for dividend of CRISIL, Gujarat Gas, Trend Electronics and Value Industries
NMDC FPO closes today
IIP numbers for January to be out today
Pre-market report
Global signals
European shares ended lower on Thursday, March 11, 2010 after China reported a jump in inflation and also on a dull US economic data, which failed to impress the investors.
On Thursday, the US markets closed higher for the third consecutive day as banking shares gained the most.
In today's trade, Asian indices are trading flat. At the time of writing this report, SGX Nifty trades 10.50 points lower.
Indian markets
The markets are likely to open firm owing to the mixed global cues. As the markets remained lackluster for the three straight sessions, all the investors will be focused on the Industrial Production Data (IIP) scheduled later today, which will set the trend of the markets.
Commodity cues
In the commodity space, the Crude oil prices posted gains after the three day losses, with the Nymex light crude oil for the April series up by $0.06 per barrel, whereas in the metals space, the Comex Gold for the April series remained unchanged and the Comex Silver for the May series was up by $0.15 to a troy ounce respectively.
Daily trend of FII/MF investment in equities
On March 11, 2010, foreign institutional investors (FIIs) were the net buyers of the Indian stocks to the tune of Rs418.20 crore, whereas the domestic mutual funds, on March 09, 2010, were also the net buyers of the stocks to the tune of Rs26.70 crore.
NMDC, DQ Entertainment Grey Market Premiums
| Company Name | Offer Price (Rs.) | Premium (Rs.) | Kostak (Rs. 1 Lac Application) |
| United Bank of | 60 to 66 | 9 to 9.50 | - |
| DQ Entertainment (Inter.) | 75 to 80 | 50 to 52 | -- |
| NMDC (FPO) | 300 to 350 | 20 to 25 | 2000 to 2100 |
| Pradip Overseas | 100 to 110 | 16 to 17.50 | 1900 to 2000 |
| ILFS Transportation | 242 to 258 | 33 to 34 | 2000 to 2100 |
Bombay Rayon Fashions
Traders with short-term trading perspective can buy the stock of Bombay Rayon Fashions. Since August 2009, the stock has been on a broad sideways consolidation in the range of Rs 180 and Rs 220. Though the stock tested the upper boundary in January and February, however, it failed to breakthrough. The stock is trading well above its 21 and 50-day moving averages and is re-testing the upper boundary.
There has been an increase in volume over the past three trading sessions. The daily relative strength index has entered in to the bullish zone and weekly RSI is on the verge of entering this zone. Both the daily and weekly moving average convergence and divergence indicators are featuring in the positive territory and the daily MACD has signalled a buy. Moreover, within this consolidation, the stock has been on a medium-term uptrend since December 2009. Considering that the medium-term up trendline is in tact we are bullish on the stock from short-term perspective.
We expect the stock to penetrate the upper boundary and rally until it hits our price target of Rs 245. Traders can consider buying the stock while maintaining stop-loss at Rs 211.
via BL
Crude closes little higher
Lower dollar offsets effects of China's data
Crude prices ended little higher on Thursday, 11 March 2010. Prices managed to close above $82. Prices rose following China's economic data. Prices also rose as crude supplies rose less than expected for last week and due to anticipation of higher demand in the coming months.
On Thursday, crude-oil futures for light sweet crude for April delivery closed at $82.11/barrel (higher by $0.02 or 0.01%). Prices fell to a low of $81.26 during intra day trading. Prices gained 2% last week.
Crude prices rose 9.3% in February as supply-and-demand issues began to take hold in a market for months dominated by moves in the dollar. Prices have ranged between $69 and $84 a barrel since October. Crude has risen 72.7% in last one year.
Commodities came under pressure today after a report from China showed sharper-than-expected increases in consumer and producer prices. That rekindled concern about tighter monetary policy in the country, which many have looked to as a leader in the global economic rebound. China reported that its inflation rate rose to 2.7% in February from 1.5% the prior month.
In the latest weekly inventory report, the EIA reported yesterday that crude-oil supplies were up 1.4 million barrels in the week ended 5 March as against an expected figure of 2.1 million barrels. The EIA also reported a drop of 2.9 million barrels in gasoline stocks and a drop of 2.2 million barrels in supplies of distillates, which include heating oil.
In the latest report, OPEC reported yesterday that it now expects world oil demand to grow by 900,000 barrels a day in 2010. This represents an upward revision of 100,000 barrels a day from the previous assessment.
In the currency market on Thursday, the dollar index, which measures the strength of the dollar against a basket of six other currencies, fell by more than 0.2%.
Earlier during the week, in the latest monthly report, the EIA had reported that it now expects oil consumption growth of 1.5 million barrels a day this year, up from 1.2 million barrels a day in last month's outlook. As per the report, with that demand, oil prices should stabilize above $80 a barrel. The report also detailed that with this, price of crude oil is to average above $80 a barrel this spring, then rise to about $82 a barrel by the end of the year. Crude should climb to $85 a barrel by the end of 2011.
Among other energy products on Thursday, heating oil for April rose 0.4 cents to $2.12 a gallon, while gasoline for the same month fell 1.5 cents to $2.27 a gallon.
Also on Thursday, natural gas for April delivery ended down 11.9 cents, or 2.6%, at $4.44 per million British thermal units in electronic trade. It earlier rose as high as $4.59 per million Btus.
Crude ended FY 2009 higher by 78%, the highest yearly gain since 1999. It reached a high of $82 earlier in October 2009 and hit a low of $33.98 on 12 February 2009. Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 45% since then. Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex
Market may remain choppy; IIP data eyed
The market may open flat to marginally higher on mixed Asian stocks. US stocks closed slightly higher on Thursday, 11 March 2010. Closer home, the January industrial output data is due today which is expected to rise more than 16.5%. Industrial output data rose 16.8% in December 2010 over a year earlier.
Food prices moderated slightly while fuel price inflation accelerated in late February adding pressure on the Reserve Bank of India (RBI) to raise rates at its April policy review. The wholesale price inflation (WPI) is already at 8.56% in January, just above the Reserve Bank of India's (RBI) end-March projection of 8.5%.
The food price index rose 17.81% in the 12 months to 27 February 2010, marginally lower than an annual rise of 17.87% in the previous week. The recent government decision to raise fuel prices has also stoked inflation. The fuel price index rose 11.38% in the 12 months to 27 February 2010, shooting up from an annual rise of 9.59% in the previous week.
Market expectations of a rate hike remain unchanged as traders expect the RBI's next move will be to raise its benchmark lending and borrowing rates by at least 25 bps each to 5% and 3.5% respectively.
The policymakers including the deputy chairman of the planning commission have said earlier this week that food prices will moderate over the next few months. Food prices have moderated only marginally this week, but with fuel prices on the rise, these are now spilling over to the broader economy. This is reflected in the fact that manufacturing price inflation picked up to 6.55% in January from 5% in December. Food prices are making the ruling coalition vulnerable to political attacks.
Sustained buying by foreign funds since the presentation of the Union Budget 2010-2011 on 26 February 2010 has lifted investor sentiment. As per data from the stock exchanges, foreign institutional investors (FIIs) bought stocks worth a net Rs 7511.10 crore this month, till 10 March 2010. The Sensex has garnered 913.76 points or 5.6% since the presentation of the Budget on 26 February 2010.
The stock market has applauded the Union Budget 2010-2011 due to its thrust on infrastructure development, government's pledge to reduce fiscal deficit over the next three years, a smaller-than-expected 2% hike in excise duties, and reduction in taxes for individuals which will boost disposable income. The Finance Minister has assumed a modest GDP of about 8% and inflation of about 4.5% for 2010-2011.
Going ahead, the key triggers for the stock market are structural reforms such as decontrol of petrol and diesel prices, targeting of food subsidies, and financial sector reforms such as increase in foreign direct investment in insurance sector.
The fourth and the last installment of advance tax by India Inc due on 15 March 2010 will give a broad indication of fourth quarter earnings.
Meanwhile, the follow-on public offer (FPO) of iron ore miner NMDC received tepid response. The issue was subscribed 79% by on the second day of the issue on Thursday. The FPO ends today, 12 March 2010. The government is divesting 8.38% stake in NMDC through the FPO as a part of its aggressive divestment drive to raise funds in a bid to bring fiscal deficit down. The price band has been fixed between Rs 300 and 350.
Asian stock markets were mixed on Friday after the Standard & Poor's 500 index closed at a 17-month high with investors worried about inflationary pressures in China. The key benchmark indices in Japan, Singapore and South Korea rose by between 0.08% to 0.41%. But the key benchmark indices in China, Hong Kong, Indonesia and Taiwan fell by between 0.02% to 0.24%.
Investors are wary China may start raising interest rates to keep a lid on mounting inflationary pressures. The data released Thursday showed that China's inflation rate jumped to 2.7% in February over a year earlier from 1.5% in January
The investors are awaiting further insight into the state of the U.S. economic recovery, which they hoped to receive from reports Friday on U.S. retail sales and consumer sentiment figures. The numbers are expected to indicate how big an appetite Americans have for spending.
On Wall Street on Thursday, 11 March 2010, stocks were confined to a narrow trading range for most of the session, but a late bounce in financials pushed the S&P to a 17-month high above the 1,150 mark. The Dow Jones industrial average finished up 44.51 points or 0.4%, to 10,611.84. The S&P 500 index rose 4.63, or 0.4% to 1,150.24. It now stands at its highest level since 1 October 2008. Nasdaq shut 10 points up at 2,368.
On to the economy - initial jobless claims fell by 6,000 last week to 462,000. Meanwhile, continuing claims totaled 4.56 million, which was greater than what was expected. The trade gap shrank 6.6% as oil imports dropped to their lowest level since February 1999. The trade balance for January came in with a 37.3 billion dollars deficit. In other data, and mortgage rates dropped for a second straight week, remaining below 5%.
The chances of a broad overhaul of U.S. financial regulation dimmed on Thursday after bipartisan Senate talks collapsed, jeopardizing a top Obama administration priority
The Greek economy is set to shrink by more than expected this year, the government said on Wednesday, as it braced for nationwide strikes protesting its plans for bringing the country's budget deficit under control.
Closer home, the key benchmarks settled at their highest level in a month and a half on Thursday, 11 March 2010 as sustained buying by foreign funds since the presentation of the Budget late last month underpinned sentiment. The BSE 30-share Sensex rose 69.63 points or 0.41% to 17,167.96, its best close since 20 January 2010.
As per provisional figures on NSE, foreign funds bought shares worth Rs 304.87 crore and domestic funds sold shares worth Rs 202.70 crore on Thursday.
Market likely to open flat
Indian equities are likely to open flat on Friday, Mar. 12, 2010. SGX Nifty is trading at 5,144.50 (8.04 a.m.), 15.50 points lower than Thursday`s closing of 5,129.
Asian stocks rose, as the yen weakened on speculation Japan`s central bank will loosen monetary policies. Japanese benchmark index Nikkei 225 rose 41.78 points, or 0.39%, to trade at 10,706.73.
US stocks Thursday helped the market extend its grind higher to a third day. The Dow Jones industrial average rose 44.51 points, or 0.42%, to 10,611.84. It is down 1.1% from its recent high in Jan. 19.
Among Indian ADRs, Sterlite Industries (1.64%), Patni Computer Systems (1.28%), I C I C I Bank (1.17%), Infosys Technologies (0.28%) were major gainers. On the other hand, Wipro (0.04%), H D F C Bank (0.15%), Dr Reddy`S Laboratories (0.23%), Satyam Computer Services (0.55%) were major losers.
European stocks declined from a seven-week high as U.S. jobless claims fell less than forecast and basic-resource producers retreated on speculation rising inflation will prompt China to pare back stimulus measures. UK`s benchmark index FTSE 100 declined 23.31 points, or 0.41%, to end at 5,617.26.
Oil prices stayed put, just above USD 82 on Thursday, as investors mulled demand uncertainties and a government report that showed the country`s huge natural gas reserves shrank a little last week. Benchmark crude for April delivery rose 2 cents to settle at USD 82.11 a barrel on the New York Mercantile Exchange.
In the spot market, the Dollar Index dropped 0.016% to 80.31. It touched a high of 80.33 and a low of 80.25 after opening at 80.28. (21:27 ET)
Daily News Roundup - March 12 2010
Bharti Airtel made its debut into media and entertainment services with the launch of the Airtel Digital Media Business. (BL)
Fortis Healthcare Ltd acquired 23.9% strategic stake in Singapore-based healthcare service provider, Parkway Holdings Ltd for about US$685.3mn. (BL)
Bank of India has increased interest rates on big-ticket (wholesale and bulk) deposits by 75-150 basis points across various maturities (BL)
Maruti Suzuki would export at least 35,000 units of the A-Star compact car to Nissan in Europe in FY11. (BL)
Ashok Leyland plans to import radial CV tyres and has sought a licence from the Government. (BL)
Hero Honda would finalise the location to set up its fourth manufacturing facility by September 2010. (BL)
TVS plans engine making unit in Karnataka. (BS)
CESC intends on adding 5,000 MW of thermal generation capacity over the next few years, with investments in the range of Rs 200bn, by establishing five new facilities. (BS)
Bosch is expected to declare a lockout at its flagship plant in Bangalore on March 15. (BL)
Mahindra Satyam has won a US$48mn contract from KMD, an IT major from Denmark that specialises in the public sector projects. (BL)
ICSA India has received work orders worth Rs1.3bn from Powergrid Corporation of India, taking the total order book size to Rs21.3bn. (BL)
Areva T&D India has bagged a contract worth Rs4bn from Uttar Pradesh Power Transmission Corporation Ltd for building a substation. (BL)
Anglo-Swedish major AstraZeneca has tied up with Torrent Pharmaceuticals to brand and supply a basket of Torrent's non-patent medicine in emerging markets. (BL)
IVR Prime Urban Developers raised Rs1.5bn through issue of secured redeemable Non-Convertible Debentures (NCDs) on private placement. (BL)
The rate of food inflation showed some signs of moderation, sliding to 17.81% for the week ended February 27, 2010. (BS)
Cement industry registers 6.34% growth in dispatches during February. (BS)
According to UN Industrial Development Organisation (UNIDO), India has entered into the league of top-10 industrial producers for 2009. (BL)
Public and private sector banks have raised Rs330bn through issue of capital bonds so far this fiscal year. (BL)
Time to stand and stare!
Enjoyment is not a goal, it is a feeling that accompanies important ongoing activity.
There is no great feeling in the market as we stare at another soft opening. The global markets appear inconclusive. US stock benchmarks posted moderate gains while Europe was subdued. Asian markets are trading mixed. Looks like investors are on a ‘wait-n-watch’ mode and appear to be reluctant in taking major bets immediately. The Nifty is expected to remain stuck in the 5100-5150 range and the next hurdle is near the 5200. Fresh selling could take it as low as 5030-5050. Inflation numbers showed a spike in fuel price. A possible trigger later in the day would be the IIP numbers.
Meanwhile, India Inc’s global conquest continues unabated – yet another sign of revived confidence following the financial turbulence. The economy is in good shape, if not great. The Government is aiming for the top slot in a few years. This may sound a little ambitious but not unachievable. Much will depend on how the policy landscape unfolds besides of course the state of the world economy. Among the other major headwinds include inflation and its implication on monetary policy. But, fund flows should remain healthy given the strong medium-to long-term growth prospects for India.
FIIs were net buyers in the cash segment on Thursday at Rs3.05bn on a provisional basis. Local funds were net sellers of Rs2.02bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers of Rs9.70bn. On Tuesday, FIIs were net buyers of Rs17.7bn in the cash segment. On Wednesday, FIIs were net buyers of Rs4.18bn in the cash segment, as per SEBI figures.
US stocks gained traction late on Thursday, ending higher for a third straight session, after Citigroup said that it is on its way to sustainable profitability. An apparent lack of progress on the financial regulatory front prompted investors to get more optimistic on financials.
The Nasdaq and S&P 500 ended at 18-month highs as investors eyed the day's jobs and trade news and the direction of the US dollar.
The Dow Jones industrial average added 44 points, or 0.2%, ending at a six-week high. The S&P 500 index added 5 points, or 0.5%. The Nasdaq gained 3 points, or 0.1%.
The dollar fell versus the euro and gained against the yen.
US light crude oil for April delivery rose 2 cents to settle at $82.11 a barrel on the New York Mercantile Exchange.
COMEX gold for April delivery rose $0.10 to settle at $1,108.20 per ounce.
Treasury prices slipped, raising the yield on the 10-year note to 3.74% from 3.72% late on Wednesday.
Market breadth was positive.
Stocks seesawed through most of the session as investors turned cautious after the recent advance and showed concerns about a spike in China's inflation last month. But the weakness gave out by the close and markets ended with slim gains.
Stock index futures and commodities were down after China reported its inflation rate rose to 2.7% in February from 1.5% the prior month.
US stocks have been on an upswing lately, posting gains over the last month. As of Thursday's close, the Dow has risen in eight of the last 10 sessions and the S&P 500 and Nasdaq have risen in nine of the last 10 sessions.
Further stock gains will be determined by earnings and revenue growth and the transition between a government stimulus-driven economy and one driven by fundamentals.
On Capitol Hill, Senate Banking Committee Chairman Christopher Dodd, D-Conn., said he would offer his own overhaul of financial regulation after failing to get bipartisan agreement.
Today's jobs report was a little disappointing. The Labor Department reported that the number of Americans filing new claims for unemployment fell to 462,000 from a revised 468,000 the previous week. Economists thought it would fall to 460,000.
Continuing claims, a measure of Americans who have been receiving unemployment checks for a week or more, rose to 4,558,000, up 37,000 from the previous week's reading of 4,521,000. Economists expected 4,500,000 claims.
The January trade gap narrowed to $37.3 billion from a revised reading of $39.9 billion. The deficit was expected to widen to $41 billion, according to forecasts.
Another report showed that foreclosure rates rose 6% in February from a year earlier, but fell 2% from the previous month.
In corporate news, BP said it will pay Devon Energy $7 billion for exploration rights in Brazil, the Gulf of Mexico and the Caspian sea.
Regional banks extended gains after reports that Britain's Barclays was on the prowl for a U.S. retail bank acquisition.
In European markets, German automakers Volkswagen and BMW closed higher while miners lost ground in a broadly weak session. The Stoxx Europe 600 index lost 0.3% at 257.55. On Wednesday, the index advanced to a level not seen since Jan. 19, after gaining for seven out of nine sessions.
Greek shares were also underperforming, with the ASE Composite Index down 0.7% at 2,124.58 as workers staged their third general strike in protest at government austerity measures.
Germany's DAX index lost 0.1% to 5,928.63, the U.K. FTSE 100 index declined 0.4% to 5,617.26 and the French CAC-40 shed 0.4% to 3,928.95.
Buying towards the fag end lifted the otherwise lackluster benchmark indices to shut with modest gains. The index heavyweights like ICICI Bank, Reliance Industries and Infosys led from the front.
However, the breadth on the BSE Sensex was negative for second day, out of the total 2918 stocks, 1774 declined as against 1065 advances and 79 remained unchanged. Among the 30-components of Sensex, 15 stocks ended in the negative and 15 ended in the green.
The BSE Sensex advanced 70 points to end at 17,168 after touching a high of 17,215 and a low of 17,054. The NSE Nifty gained 17 points to end at 5,133.
Investors seem to be upbeat on the Initial public offerings rather than the FPOs as scintillating debut for IPOs continue. The most recent ones namely Texmo pipes, Jubilant Foodworks, Infinite Solutions and Cox & Kings were among the major outperformers.
Man Infraconstruction, which turned out to be the most successful IPO so far this year, debuted with dazzling gains on the Indian bourses today. The stock shot up to Rs348 as against its issue price of Rs252 per share translating in to premium of 38%. The IPO was subscribed 62.33 times. The issue received total bids for over 290mn shares against 465.3mn shares on offer at the end of the IPO. It generated a demand for ~Rs73.08bn worth of shares instead of the Rs1.42bn.
Among the 30-components of Sensex, 15 stocks ended in the negative and 15 ended in the green.
In Asia, the Nikkei in Japan ended in the green, adding 1%, while Australia's S&P/ASX ended flat. Shanghai SE Composite ended flat and Hang Seng index in Hong Kong edged higher by 0.2%.
In Europe, stocks were in negative terrain. The DAX in Germany, the CAC 40 index in France and the FTSE in the UK all were flat.
Coming back to India, among the BSE sectoral indices, the IT index was the top gainer, adding 1%, followed by the Teck index that was up 1% and the BSE Bank index was up 0.7%.
Among the losers were BSE Auto index down 1% and BSE FMCG index down 0.8%. Even, the BSE Mid-Cap index was down 0.2% and BSE Small-Cap index was down 0.2%.
Outside the frontline indices, the big gainers in the broader market were Shriram Transport, Sintex Ind, Exide Ind and Jain Irrigation. On the other hand, losers included NMDC, Hindustan Copper, India Cements and Gujarat NRE Coke.
Shares of Thermax have further advanced by 1.5% to end at Rs683 after the company yesterday announced that it has formed a strategic joint venture with Babcock & Wilcox Power Generation Group, Inc. (B&W PGG), to engineer, manufacture and supply supercritical boilers for the Indian power sector. The Joint venture will also manufacture subcritical boilers over 300 megawatts (MW) in size. The agreement was signed by M S Unnikrishnan, Managing Director and CEO, Thermax, and Richard L. Killion, President and Chief Operating Officer, B&W PGG.
Crompton Greaves won order worth Rs3.02bn to construct a substation in the northern Indian state of Uttar Pradesh. The contract was signed on March 5, the company said. The stock ended lower by 1% to Rs242. The scrip opened at Rs244 it touched an intra-day high of Rs246 and a low of Rs240 and recorded volumes of over 0.23mn shares on BSE.
AstraZeneca plc announced a license and supply agreement with Torrent Pharmaceuticals Ltd. As per the deal, AstraZeneca would initially buy from Torrent the licenses and market authorizations for 18 products in 9 countries and the agreement allows the flexibility to add further products and new countries where AstraZeneca sees opportunities for growth.
Shares of Torrent Pharma gained by 3% to end at Rs490. The scrip opened at Rs476 it touched an intra-day high of Rs501 and a low of Rs476 and recorded volumes of over 81,000 shares on BSE.
Areva T&D won Rs4bn contract in India by state utility Uttar Pradesh Power Transmission Corpo- AREVA ration Ltd (UPPTCL). AREVA will build a 765 kV Extra High-Voltage (EHV) substation at the Anpara "D" thermal power plant1 in the state of Uttar Pradesh.
The stock gained 2% to Rs279. It opened at Rs275 it touched an intra-day high of Rs281 and a low of Rs273 and has recorded volumes of over 0.21mn shares on BSE.
Fortis Healthcare hit news 52-week high to end at 178 advancing 5% after the company announced that through one of its wholly owned subsidiaries has entered into a definitive agreement to acquire 23.9% strategic stake in one of the Asia's largest healthcare service provider, Parkway Holdings Ltd. from TPG Capital (formerly Texas Pacific Group) in an off market deal.
McNally Bharat received an order worth Rs243.8mn for Design, Engineering, Supply of Equipment, Civil Work, Structural Work, Erection & Commissioning of flood lighting along Indo- Bangladesh Border in the State of Tripura (Package Nos. Panifl- IV, Gokulfl- I, Gokulfl- II & Gokulfl IV) for national projects construction corporation ltd. The contractual period of completion is within 11 months.
The stock ended higher by 1.5% to end at Rs280. The scrip opened at Rs270 it touched an intra-day high of Rs284 and a low of Rs270 and recorded volumes of over 0.14mn shares on BSE.
Bullion metals add little shine
Prices register marginal rise after Chile is hit with aftershock of last quake
Precious metal prices ended little higher on Thursday, 11 March, 2010. Prices rose after Chile was rocked by an aftershock, which followed the major earthquake that hit the country a fortnight back. Prices also increased following China's economic data.
Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa.
On Thursday, gold for April delivery ended at $1,108.2 an ounce, higher by $0.1 (0.01%) an ounce on the New York Mercantile Exchange. Last week, gold gained 1.4%. In FY 2010, gold touched a high of $1,154 in January.
On Thursday, May Comex silver futures ended higher by 14.2 cents (0.8%) at $17.15 an ounce. Last week, silver ended higher by almost 8%.
Gains were limited today, after Chile's mining-giant Codelco, the largest producer of copper in the world, said it found no damage to its Andina and El Teniente operations. Both locations were temporarily shut down after the February quake.
Gold and other metals also advanced after a report from China showed sharper-than-expected increases in consumer and producer prices. That rekindled concern about tighter monetary policy in the country, which many have looked to as a leader in the global economic rebound. China reported that its inflation rate rose to 2.7% in February from 1.5% the prior month.
In the currency market on Thursday, the dollar index, which measures the strength of the dollar against a basket of six other currencies, fell by more than 0.2%.
Gold had ended FY 2009 higher by 24%. Silver futures had ended 2009 up 50%. The dollar index had lost 4.2% against its counterparts last year.
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