Posts Tagged ‘zinc’

Binani Inds to Buy Public Holding in Cement Unit

Binani Industries Ltd said on Wednesday it received board approvals to acquire the entire public holding in its unit Binani Cement, sending shares of both companies soaring.

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In a separate statement, Binani Cement said it will voluntarily delist equity shares from both BSE and NSE, after getting shareholders’ approval. Its shares rose as much as 20% on the news, while the parent’s stock rose 16%.

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Traders expect that the purchase price would be decided using a reverse book-building method, which pushed up the stock price, said Jagannadham Thunuguntla, equity head at SMC Capitals.

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In reverse book-building, shareholders can indicate the price at which they will tender the shares, he added.

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As on June 30, promoters hold 51.28% stake, while non-institutions hold 41.75%, institutions 6.97% and foreign institutional investors hold 2.10%, BSE data showed.

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Binani Group is into manufacturing of cement, zinc, glass fibre and downstream composites.

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Binani Industries would have to spend over Rs 700 crore to acquire the entire shareholding at the current share price, Thunuguntla said, adding that this would be part of Binani Industries internal restructuring plan.

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Shares of the Binani Cement closed up 14.41% at Rs 95.65, while that of Binani Industries closed 11.4% up at Rs 121.45 in a strong Mumbai market.

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Source:Moneycontrol

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COMMODITY WEEKLY COMMENTARY 4th – 8th October

Once again international gold prices tested their new highs last week as prices breached the psychological level of $1300 and silver marked the 30 year high on COMEX division. However local gold prices were mostly remained sideways during the week amid stronger rupee and profit booking which limited the upside in prices.

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Nevertheless, silver once again overshadowed gold movements and surged high to claim 33000 mark on MCX. In base metal pack copper along with nickel, zinc and lead started the week with positive energy but dull economic data from U.S and Europe economies pressurized the prices in later part. However improved Chinese  manufacturing data once again underpinned the prices and supported copper and nickel to end the week in green zone.


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Earlier, shanghai copper dropped to its lowest in more than a month last week as China’s move to curb property prices dented sentiment, but losses were limited by improving demand prospects and ongoing weakness in the dollar. In energy counter crude oil settled up last week helped by data showing a drop in U.S. crude and product inventories.


Further fall in dollar index also helped the prices to move up. U.S. crude stocks fell 475,000 barrels last week, data from the Energy Information Administration showed. U.S. distillate inventories fell by 1.27 million barrels in the week to Sept. 24, counter to analyst expectations for a 300,000 barrel build.


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In agro commodities spices pack witnessed see saw moves during the week and remained volatile. Pepper futures ended the week with negative impression amid weak exports and low trading activity. As per Spices Board data, pepper exports from India have gone down by 5% in volume term during April-August 2010 as compared to same period last year. Jeera futures also traded on a negative note during the week on extended selling pressure backed by weak domestic and export demand. Expectations of rise in acreage under jeera crop this season have also supported the down side.

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In oil seeds section soya bean and mustard remained under pressure as factors like bumper soya crop expectation and pick up in fresh arrivals to the spot market led the market to show a negative trend. The chana futures traded on a positive note for most part of the week retreating from previous losses on fresh buying from retail sector.

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COMMODITY WEEKLY COMMENTARY

Most of the commodities closed in positive territory when Federal Reserve repeated its pledge to keep monetary conditions loose for the longer term. Impact was seen on all metals and energy; despite the rise in dollar index. Base metals complex was no exception, copper traded in upside territory.

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Power distribution problems after a devastating earthquake in Chile also supported the price. Terrific short covering witnessed in nickel on the news that BHP Billiton would take up to two weeks to restart nickel production at its Kwinana refinery in Australia apart from other factors. Both, lead and zinc closed down.

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Event risk made energy complex volatile. OPEC for the fifth time since 2008 decided to maintain its production limits unchanged. Furthermore, crude stocks rose 1 million barrels last week, while distillate inventories fell 1.5 million barrels and gasoline stocks dropped 1.7 million barrels, according to EIA.

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Crude traded in upside territory but could not breach $83 per barrel. Worries about Greece’s debt problems capped the upside. Surplus in inventory gave a jolt to natural gas prices and its futures dropped to the lowest price in more than five months. Vague movements in dollar index and euro resulted in see saw movements in bullions. However, on Friday many commodities including base metals and energy complex erased their previous gains on rise in dollar index.

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Agri commodities on domestic front traded with sideways to bullish bias in the week gone by. Guar pack remained in range due to subdued trading activity in spot as well as future market. In oil seed section; soya bean prices traded in range while mustard seed futures gained smartly on NCDEX.

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Weak trend in overseas market and bearish domestic fundamental factors such as weak export demand for soya meal and ample inventories of edible oils capped the upside in soya bean prices. The sharp decline in Malaysian palm oil futures had also pressurized the prices. However, mustard futures gained on the back of strong fundamentals. Lower production projection for the current year had a positive impact on the market.

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In spices pack; turmeric and pepper shot up like a bullet last week while chilli and jeera futures remained range bound. Pepper futures traded on a positive note due to continued fresh buying on the exchange supported by the factor of tight supply situation amid gaining demand. Despite the expectations of increase in production, arrivals are on the lower side. This is leading to tight supply in the physical markets. Turmeric futures gained consecutively for the sixth week and hit contract highs in the week gone by on firm spot cues and low stocks, but conceded the gains by the end of the week on profitbooking.

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Rising arrivals and ample carry forward stocks were seen weighing on chana futures as prices settled in red zone.

WEEKLY COMMENTARY 1st – 05th March

Series of economic data amid Indian Union Budget resulted in erratic price movements in commodities throughout the week. Market participants indulged actively themselves in the market. Bullions cut some of their losses in the later part of the week on short covering.

Expiry of February contract of base metals also made them very volatile. Most of them surrendered their previous gain on poor outcome of economic data.

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Strong dollar together with the most recent signs that the U.S. economy is still struggling to recover, led bearishness in all base metals. On the date of expiry, lead closed down and the gap between lead and zinc  narrowed down to 90 paisa. Similar to base metals, even energy complex drifted lower on negative economic releases in the middle of strong dollar.

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A stronger dollar makes oil and other commodities less affordable for holders of other currencies. On MCX, it touched the 3722 and moved down towards the level of 3600 on profit booking. Rising number of rigs coupled with rising mercury in Midwest cooled down natural gas prices further. On Friday, commodities recovered marginally on improved US GDP.

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Bears were seen active in agro-commodities last week as most of the future contracts on NCDEX settled in red zone on weekly basis. Guar pack settled in red territory as weak domestic and export demand hammered maize prices on future bourses.

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In oil seeds section, soyabean also ended the week with negative impression as the Indian market moved in line with weak overseas market. Continuation of subdued demand for soy meal from South East Asian countries and ample stocks of edible oil kept prices under check during the week.

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Mustard seed futures traded range bound. Lack of demand and improvement in weather condition had a bearish impact on market in the week gone by.

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In spices pack except turmeric futures all other futures settled in red zone. Pepper and jeera futures maintained their downtrend during the week taking cues from the higher fresh arrivals to the physical market. However turmeric futures ended the week on positive note supported by good export demand. Maize also traded in negative zone due to fresh crop arrivals and higher output estimates. According to latest government estimates the total output of current rabi season will be at 5.64 million tonnes over 5.61 million tonnes last year.

IMCX-India’s Fourth National Commodity Bourse, To Be Launched Soon:)

IMCX-to-be-launched

International Multi Commodity Exchange (IMCX)

Commodity trading in India has a long history & was started much before it started in many other countries.

Today, apart from numerous regional exchanges, India has three national commodity exchanges namely, Multi Commodity Exchange (MCX), National Commodity and Derivatives Exchange (NCDEX) and National Multi-Commodity Exchange (NMCE).

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THE RISING WAVES

These commodity exchanges have been performing extremely well in these years.

The turnover of commodity exchanges in India surged by 31% in the April-August period, led by a surge in trading of farm goods.

Total value of trading at the Commodity Exchanges during the fortnight from 16th August 2009 to 31st August 2009 was Rs. 3,04,651.88 crore.

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NEED OF THE HOUR

In India, futures’ trading in commodities is zooming.

India’s commodity exchanges have witnessed major action this year and are getting into investing and managing new commodity bourses.

Another commodity exchange may help using the opportunities better ; thereby improving trading volumes of specific contracts & be more efficient is the price discovery, which in turn will attract a wider constituency of participants from the entire commodity value chain i.e. government, producers, marketers, importers, exporters etc.

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THE FIRST STEP

A new commodity exchange, International Multi Commodity Exchange is going to launch very soon under the market regulator Forward Markets Commission (FMC).

IMCX is promoted by Indiabulls Financial Services Ltd (IBFSL) and India’s biggest state-run trading firm, MMTC Ltd, and part-owned by more institutions.

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The exchange is planning to start operations next month as the country’s fourth national commodity bourse & is ready to grab its share of a futures market that is growing 30% a year.

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BUILDING TECH – PLATFORM

The US-based exchange services provider Millennium Information Technology (MIT) has been awarded the contract for implementing the technology platform for the aforesaid exchange.

The US-headquartered MIT provides application solutions to financial and telecom industries.

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THE PILLARS OF FOUNDATION

IMCX will be the first commodity bourse in India to comply with the criteria of revised ownership criteria that makes the participation compulsory of public sector units or cooperatives.

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Currently, Indiabulls Financial Services Ltd. (IBFSL) holds 40% of the exchange, state-run MMTC Ltd. holds 26%.

Forward Markets Commission rejected the United Stock Exchange of India’s (USE’s) 10% stake buy in the bourse, on the grounds that the stock exchange is yet to be fully recognized.

So far, Indiabulls has diluted 24 per cent to HDFC Bank, Yes Bank and Indian Potash Ltd & IDFC + Krishak Bharati Cooperative Limited (KRIBHCO) have purchased a stake of 5% each in Indian Commodity Exchange, which was to be sold to the USE earlier.

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BUSINESS OPERATIONS

The exchange will start operations by launching 10-12 contracts in bullion, metals, energy and agricultural commodities with some uniqueness in contracts to attract more volume.

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·The exchange will launch gold mini and gold 1 kilogram contracts in the bullion segment. The gold contracts will have multiple delivery centers in five-six cities.

· In base metals, it is planning to offer copper, zinc and lead or nickel futures, and in the energy segment it will launch crude oil and natural gas contracts. Delivery-based contracts will be launched in the base metal segment, where contracts are mostly non-deliverable at other exchanges.

·The exchange has also tied up with several logistic providers for warehouse facilities, & in the next phase of expansion, the exchange may create its own warehouses

·Guar seed, rapeseed, refined soyoil, soybean and turmeric will be among the agricultural contracts.

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