Metals may edge lower after base metal prices fell sharply on the London Metal Exchange on Friday on fund-liquidation after a report of heavy losses at a hedge fund. Hedge fund Red Kite, which posted strong gains in 2006, suffered an approximately 20% loss in early January, and is now trying to stall investors who want to pull money out, The Wall Street Journal reported.
Benchmark copper for delivery in three months closed at $5,330, down 4.8% from Thursday's close of $5,600. In New York, copper futures closed at their cheapest levels in 10 months. Rising LME copper stocks also dampened sentiment, with stocks up 127% over the last year and up nearly 5,000 tonnes this week. Copper is down more than 12% since the start of the year, and around $3,000 below the peak hit in May last year.
On Friday, Zinc ended down at $3,085 versus $3,390 after falling 11.8% at one point to $2,990. Zinc prices have tumbled by more than 25% since the start of the year on worries about a looming surplus, China turning into a net exporter of zinc in 2006, and a slowdown of demand in Europe and the United States. Aluminum witnessed a relatively modest fall of 1.2% at $2,720 on Friday.
Two-wheeler maker Kinetic Engineering said on Friday, it plans to issue 6,00,000 convertible warrants at Rs 156 per share to Reliance Capital. Kinetic said it will also issue 1,00,000 shares at Rs 156 each to Ambit Corporate Finance.
Oil and Natural Gas Corporation (ONGC) reportedly approved a proposal to ink a memorandum of understanding (MoU) with GAIL (India) for jointly undertaking pipeline projects for evacuating gas from the recent discoveries announced by ONGC in the Krishna Godavari and Mahanadi basin. Reports suggest that ONGC and GAIL have also agreed on a 50:50 joint venture company to execute these projects. The two projects proposed to be undertaken, by the new JV include laying a pipeline from Kakinada to Haldia in West Bengal and from Orissa to Bihar and other neighbouring states.
GlaxoSmithKline said on Friday, it will seek a preliminary injunction to stop Ranbaxy launching a generic version of Glaxo's Valtrex drug for shingles and herpes in the United States. Ranbaxy won US regulatory approval to market valacyclovir hydrochloride tablets on 1 February 2007, but Glaxo has been fighting Ranbaxy's plans since May 2003.
Glaxo said that under a prior agreement between the two firms, if Glaxo applied for such an injunction within 45 days, Ranbaxy would not launch its product until the court either ruled on the preliminary injunction or decided the pending court case.
Personal care products and paint brush maker Brushman (India) said on Monday it plans to raise up to $20 million either through a debt or equity issue.
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