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Thursday, September 03, 2009
Precious metals at three month high
Weak job report imparts shine to precious metals
Precious metal prices ended substantially higher on Wednesday, 02 September, 2009. Prices rose as the dollar dropped following a disappointing private sector job report thereby increasing the appeal of precious metals as a safe haven against other investment alternatives.
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 Wednesday, gold for December delivery ended at $978.5, higher by $22 (2.3%) an ounce on the New York Mercantile Exchange. It rose as high as $981.4 earlier. Last week, gold ended higher by almost 0.4%. Year to date, gold prices are higher by 11.4%.
Gold ended August, 2009 higher by 0.2%. Before this, for the second quarter, gold ended higher by 0.5%. The metal had gained 4.3% in the first quarter of this year.
On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped somewhat (5%) since then.
On Wednesday, Comex silver futures for September delivery rose by 30.5 cents (2%) to $15.365 an ounce. Last week, silver ended higher by 4.3%.
Silver ended 7.1% higher for August, 2009. For second quarter, silver rose 4.5%. Year to date, silver has climbed 35.5% this year. For 2008, silver had lost 24%.
In the currency market on Wednesday, the dollar index, which weighs the strength of dollar, against a basket of six other currencies ended slid by 0.5%.
Among economic reports expected on Wednesday, a private sector payrolls report indicated that employment in the U.S. private sector fell by 298,000 in August.
In 2008, gold prices ended higher by 5.5%. The dollar index had gained 12% that year.
At the MCX, gold prices for October delivery closed higher by Rs 316 (2.1%) at Rs 15,519 per 10 grams. Prices rose to a high of Rs 15,546 per 10 grams and fell to a low of Rs 15,180 per 10 grams during the day's trading.
At the MCX, silver prices for December delivery closed Rs 461 (1.9%) higher at Rs 24,953/Kg. Prices opened at Rs 24,410/kg and rose to a high of Rs 25,101/Kg during the day's trading.
Copper ends marginally highe
Prices rise at Comex but drop at LME
Copper prices continued to fall at Comex and LME on Wednesday, 02 September, 2009. But at the end, prices registered marginal gains at Comex. Prices dropped today due to rising LME inventories.
At USA, copper futures for December delivery rose 0.75 cents (0.3%) to 2.826 a pound. Last week, copper ended higher by 2%. Copper ended August, 2009, higher by 7%.
On the London Metal Exchange, copper for delivery in three months ended lower by $26 (0.4%) at $6,174 a metric ton. On 3 July, 2008, prices had touched an all time intra day high of $8,940.
After August, it was the eighth straight monthly gain for copper. Prices gained 23% in the second quarter. On a year to date basis, prices are higher by 89.3%.
The U.S. buys about 13% of the 17 million metric tons of copper sold annually and China buys about 20%.
In the currency market on Wednesday, the dollar index, which weighs the strength of dollar, against a basket of six other currencies ended slid by 0.5%.
Among economic reports expected on Wednesday, a private sector payrolls report indicated that employment in the U.S. private sector fell by 298,000 in August.
As per latest reports, stockpiles of the metal monitored by the London Metal Exchange have jumped 18% since mid-July to 302,950 metric tons.
In FY 2008, copper prices dropped by 54%. Prior to 2008, copper prices ended FY 2007 with a gain of mere 5.5% after a whopping 44% gain in FY 2006. The price of copper gained every year since 2002 as global economic growth boosted demand for the metal used in pipes and wires.
At the MCX, copper for November delivery closed at Rs 305.3/Kg. The closing price was Rs 0.15/Kg (0.04%) lower than previous closing price. Prices rose to a high of Rs 306.85/ Kg and fell to a low of Rs 298/Kg during the day's trading.
Among other metals traded in the LME on Wednesday, lead rose 1% to $2,080 a ton and zinc fell 0.5% to end at $1,815 a ton. Nickel fell 3.2% to end at $17,663. Aluminium ended unchanged at $1,881 a ton.
Crude remains unchanged
Prices witness a full day of volatile session
Crude prices ended almost unchanged on Wednesday, 02 September, 2009. Prices remained volatile for entire day but ultimately ended almost at yesterday's levels.
On Wednesday, crude-oil futures for light sweet crude for October delivery closed at $68.05/barrel. During intra day trading, crude touched a high of $68.8 but also fell to a low of $67.05. Last week, crude ended higher by 9.5%. It was the biggest weekly gain for crude in three months.
For the month of August, 2009, crude ended higher by a marginal 0.7%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.
Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 56% since then. Year to date, in 2009, crude prices are higher by 42%.
EIA reported today that crude inventories fell by 400,000 barrels during last week. Market had expected a decline of 1.9 million barrels. At 343.4 million barrels, crude inventories stand at a level above the upper boundary of the average range for this time of year. Utilization rate rose to 87.2% of capacity.
Rising input was partly offset by another jump in crude imports. The U.S. imported 9.58 million barrels a day of crude last week, up 3.8% from a week ago.
EIA also reported that gasoline inventories fell by 3 million barrels last week. Distillates, however, rose by 1.2 million barrels.
In the currency market on Wednesday, the dollar index, which weighs the strength of dollar, against a basket of six other currencies ended slid by 0.5%.
Also at the Nymex on Wednesday, October reformulated gasoline rose 2.64 cents, or 1.5%, to $1.8086 a gallon. October heating oil fell slightly to $1.7505 a gallon.
October natural gas fell 10.6 cents, or 3.7%, to $2.715 per million British thermal units.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for September delivery closed lower by Rs 61 (1.8%) at Rs 3,330/barrel. Natural gas for September delivery closed lower by Rs 5 (3.5%) at Rs 136.3/mmbtu.
Wednesday, September 02, 2009
Sensex ends lower for 3rd consecutive session
Realty, auto, capital goods and power stocks pulled the Sensex down 83 points to settle at 15,467.46. IT, tech and healthcare stocks resisted the trend. It opened with a loss of 69.14 points, at 15,482.05 on Wednesday tracking subdued global cues. The index traded in a lacklustre manner due to lack of cues amid volatility through the day, touching a high of 15,628.10 and low of 15,392.68.
BSE Midcap and Smallcap index dipped 0.68% and 0.32% respectively.
On sectoral front, BSE Realty, Auto, Capital goods and Power declined over 1% each, while IT rose 0.98%, Teck rose 0.52%.
European stocks fell on speculation a six-month rally has outpaced the prospects for earnings growth after valuations for the Dow Jones Stoxx 600 Index climbed to the most expensive level in six years. UK`s benchmark index FTSE 100 fell 8.14 points, or 0.18%, to trade at 4,811.13. French benchmark index CAC 40 fell 22.72 points, or 0.63%, to trade 3,560.05. Germany`s benchmark index DAX decreased 22.16 points, or 0.45%, to trade at 5,302.36. (4.23 p.m., IST)
The Sensex ended the day with a loss of 83.73 points, or 0.54% at 15,467.46 after touching a high of 15,628.10 and a low of 15,392.68. The broad-based NSE Nifty declined 16.65 points, or 0.36% at 4,608.35 after hitting a high of 4,650.45 and a low of 4,576.60.
Major gainers in the 30-share index were Reliance Communications (5.97%), Tata Motors (5.90%), Maruti Suzuki India (5.16%), Hero Honda Motors (2.97%), Hindustan Unilever (2.73%), and Reliance Capital (2.48%).
On the other hand, Sterlite Industries (India) (5.95%), Bharat Heavy Electricals (4.90%), Jaiprakash Associates (4.75%), Mahindra & Mahindra (3.55%), Housing Development Finance Corporation (3.10%), and DLF (2.92%) were the major losers in the Sensex pack.
Overall market breadth was negative. Out of the total 2,846 stocks traded at BSE, 1,163 advanced, 1,601 declined while 82 remained unchanged.
IPO Grey Market Premium - Oil India, Jindal Cotex
| Company Name | Offer Price (Rs.) | Premium (Rs.) | Kostak (Rs. 1 Lac Application) |
| Jindal Cotex | 70 to 75 | 4 to 4.50 | -- |
| Globus Spirits Ltd. | 90 to 100 | 8 to 10 | 1800 to 2000 (+ 250 Form Commission) |
| Oil | 950 to 1050 | 90 to 95 | 1800 to 1900 (+ 250 Form Commission) |
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