Financial Daily from THE HINDU group of publications
Tuesday, May 16, 2006
Financial Daily from THE HINDU group of publications Tuesday, May 16, 2006 |
|
|
|
|
|
|
|
Agri-Biz & Commodities
-
Gold & Silver Gold, silver, metals tumble on $ recovery Our Bureau
Mumbai , May 15 Domestic base metal prices dipped in tandem with the sharp fall in prices at the London Metal Exchange (LME) on Monday. Dealers said domestic prices responded to the correction in international markets. "Fundamentals however remain strong for all base metals,'' one of them said. In Monday's trade, copper wire bar slipped to Rs 429 per kg against the previous Rs 432. Lead edged down to Rs 71 per kg from Rs 72. Nickel cathode had the sharpest fall at Rs 1,000 per kg compared with the earlier close of Rs 1,055. Tin fell to Rs 530 from Rs 535 and zinc slab moved down to Rs 190 from Rs 195 traded on Saturday.
Profit-booking
Base metals, led by copper, moved down in Monday's trade on LME as speculators sold frantically. Funds were selling to book profits. According to one analyst the fall in equity markets, higher US bond yield and Monday's strong dollar in select forex markets triggered the sharp correction on LME. Aluminium was indicated at $2,950/2,980, down $145, and zinc fell by nine per cent at $3,350/3,400 against $3,680. Nickel was at $20,000/20,150 versus $21,150, tin fell to $1,215/1,235, down $445, and lead softened to $1,215/1,235 from $1,310
Short phenemenon
The downside correction could be short lived, since demand-supply fundamentals for base metals are quite positive. "Today's fall in metal prices is a very short-term phenomenon. Supply shortages continue while demand for most metals is rising,'' a research analyst at Kotak Commodities said. "Today's fall would be termed as a correction. Overall, the factors supporting an upward movement in metals' prices remain strong and unchanged," another research analyst at a commodity broking firm, said. The sharp fall in the stock price of Hindalco reflected the fall in the prices of copper and aluminium. Hindalco fell by Rs 32.35 or 13.34 per cent to Rs 210.15 on the BSE. Shares of Sterlite Industries fell by Rs 89.60 or 14.83 per cent to Rs 514.45. Shares of Nalco slipped by Rs 38.70 or 11.91 per cent to Rs 286.35.
More Stories on : Gold & Silver | Metals | Petroleum
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|