Strong start falters

COMMODITIES opened Monday strongly, buoyed by the news that China had announced intentions for a managed currency appreciation over last weekend.

That didn't last, however, with copper, nickel and gold dropping through the rest of the week, while oil prices were weighed down by concerns about the US economic recovery and an unexpected rise in crude oil stocks weighed down on prices.

Three Three-month copper was the best performerd through the week, closing Monday trading on the London Metals eExchange at $US6645 per tonne, up from $6340/t on Friday. It traded around the $6500-$6600 mark through the rest of the week, closing last night at $6570/t.

Nickel fared worse. Up substantially on Monday, to $20,005/t from $19,400/t on Friday, it fell straight back down to $19,450 at close on Tuesday and remained there or thereabouts through the rest of the week, closing last night at $19,375/t.

Spot gold also got off to a flyer at the start of the week, hitting $US1264.55 per ounce at one point on Monday, before dropping off in subsequent trading, hitting $1231.55 only 12 hours later.

Spot hgold hit a week low of $1225.25 on Wednesday, before recovering later in the week.

Spot gold was trading at $1244.20/t a short time ago.

While US oil prices made small gains last night, Singapore's Tapis crude was down almost $2 to $80.43/bbl per barrel last night.

"Crude seems to be more of a financial asset right now than a physical one," IAF Advisors analyst Kyle Cooper told Dow Jones nNewswires.

"The petroleum market remains driven by the euro and equities."

Global equities markets were hit after the US Federal Reserve raised concerns about the strength of the American economy's recovery from recession, while the Energy Information Administration's weekly report showed that crude stocks rose by 2 million barrels for the week ending June 18., against expectations of a 1MMbbl drop.

On PNG markets, Bank South Pacific remained unchanged despite the Independent Public Business Corporation agreeing to reduce its holding from 23.49% to 18.49% by selling a 5% stake to Investment Finance Corporation, a member of the World Bank.

"This is a strategic decision taken in the national interest. It will strengthen BSP with financial and technical support from IFC, which last year channeledchannelled US$14.5 billion into developing country economies," IPBC managing director Glenn Blake said.

The deal was approved on the expectation the IFC could help BSP become a more competitive player in both the domestic and Pacific banking market.


Most read News

Most read News