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Epic & Msn data

Epic	ASX
Time:	08:31:00
Mid Price:	2905.50
Change Today:
Change % Today:
Fifty Two Week High:
Fifty Two Week Low:
Market Capital:

Period & price data

Period	Price
Now:	2905.50
3 Months ago:
6 Months ago:
1 Year ago:

Additional information

Additional	Information
Market:	All Share Index
Sector:	General Mining
Epic:	ASX
News:	Latest news
Web Site:	UK Market Wrap
Other Articles:	19-03-201019-03-201018-03-2010

Stronger US Dollar undermines commodities, FTSE 100 declines as Vedanta, Kazkahmys and Xstrata fall

Overview: the FTSE 100 expectedly started lower as commodities declined after the US dollar strengthened on yesterday’s comments from fed Chairman Ben Bernanke, who said monetary policy would tighten as recovery took shape. The market failed to get a boost from yesterday's upbeat consumer spending and jobs updates that came out yesterday and sent US stock markets higher.

Oil and gas stocks were flat as increases in oil price offset the negative impact from the stronger US dollar, but miners slid keeping the FTSE 100 at the opening level. Chilean copper miner Antofagasta (LSE: ANTO), Indian miner Vedanta Resources (LSE: VED), Kazakhmys (LSE: KAZ), ENRC (LSE: ENRC) and Anglo-Swiss miner Xstrata (LSE: XTA) all lost about 3%.

Software developer Autonomy Corporation (LSE: AU) was the only non-mining stocks on the top fallers list with a 2.3% loss.

Hotel group Whitbread (LSE: WTB) was in the lead with a 3.5% climb. Sector peer InterContinental Hotels (LSE: IHT) added 2% in sympathy.

Packaging group Rexam (LSE: REX), plumbing and heating materials manufacturer Wolseley (LSE: WOS) and home improvement retailer Kingfisher (LSE: KGF), which was recently upgraded to “buy” from “neutral,” also made it to the leaderboard with gains of almost 2%.

Stock index futures in the US also were unchanged.

Commodities

Oil prices inched higher this morning. November Brent Crude rose to US$69.4%/barrel, while US benchmark crude climbed above US$71/barrel.

With the exception of Shell (LSE: RDSB) and BG Group (LSE: BG), which posted marginal gains, all major oil stocks were in the red this morning. BP (LSE: BP) declined marginally, as did Petrofac (LSE: PFC). Cairn Energy (LSE: CNE) lost almost 1%, while Tullow Oil (LSE: TLW) retreated 1.2%.

In the FTSE 250, Dana Petroleum (LSE: DNX) declined 1.5%. Dragon Oil (LSE: DGO) was down almost 1%, while Heritage Oil (LSE: HOIL) managed to keep its losses to a minimum.

Europe focused oil and gas developer Ascent Resources (AIM: AST) and North American based explorer Nighthawk Energy (AIM: HAWK) led the sector with gains of almost 7%. Atlantic Canada operating oil and gas group Enegi Oil (AIM: ENEG) and Iraq and Algeria operating Gulf Keystone Petroleum (AIM: GKP) also were in demand, adding 3.5% and 2.7% respectively.

Gold and Silver hold steady

Precious metals prices remained unchanged in the morning.

Gold held steady at US$1,047/oz, Silver was at US$17.60/oz and Platinum fluctuated around US$1,335/oz.

All major mining stocks were in decline in early trade. Fresnillo (LSE: FRES) was the leading faller in the FTSE 100, moving down 2.2%. Lonmin (LSE: LMI) followed with a 1.5% slide, while Randgold Resources (LSE: RRS) declined 1.3%.

Specialty chemicals firm Johnson Matthey (LSE: JMAT) lost 1.6%

Yamana Gold (YAU) went against the tide, rising 1.6%.

Mid caps followed the trend. Gold miner Petropavlovsk (LSE: POG) dropped 2.5%, as did Aquarius Platinum (LSE: AQP). Silver producer Hochschild Mining (LSE: HOC) shed 1%.

Commodity asset development company Mercator Gold (AIM: MCR) was the leading faller among the juniors, dipping 10%. Nickel and platinum focused Australia and South Africa operating miner Braemore Resources (AIM: BRR) and Uzbekistan focused gold miner Oxus Gold (AIM: OXS) followed with declines of 6% and 4.2% respectively.

Africa focused gold miner Pan African Resources (AIM: PAF) went in a different direction, climbing 6%. Lesotho operating diamond miner Kopane Diamond Developments (AIM: KDD), Canada based junior gold developer Rambler Metals and Mining Plc (AIM: RMM) and Western Australia operating Norseman Gold (AIM: NGL) all added more than 5%, as did Tajikistan operating gold miner Kryso Resources (AIM: KYS).

Kazakhstan operating gold producer and copper developer Frontier Mining (AIM: FML) and Philippines focused Metals Exploration (AIM: MML) were up 3%.

Copper and Nickel slide to send moners down

Likewise, base metals focused stocks were in selling mode as Copper declined to US$2.82/pound and Nickel fell to US$8.56/pound.

Kazakhmys (LSE: KAZ) and Vedanta Resources (LSE: VED) were in the lead with losses of 2.3%. Antofagasta (LSE: ANTO) and Xstrata (LSE: XTA) both shed 2%, as did Eurasian Natural Resources (LSE: ENRC).

Anglo American (LSE: AAL) and BHP Billiton (LSE: BLT) both moved down 1%, while Rio Tinto (LSE: RIO) posted marginal losses in early trade.

London's only listed pure iron ore producer and FTSE 250 constituent, Ferrexpo (LSE: FXPO) outperformed the sector with a 2% climb.

Tunisia focused junior metal miner Maghreb Minerals (AIM: MMS) led the sector, rallying 15%. Indonesia operating coal miner Churchill Mining (AIM: CHL) and uranium and copper explorer Kalahari Minerals (AIM: KAH), which just sold its project in Namibia to North River Resources, followed with gains of 10% and 9% respectively.

Shares in tantalum miner Noventa (LSE: NVTA) also were in demand, helping it to a 5% increase. opper and nickel explorer Regency Mines (AIM: RGM) and Botswana operating nickel and copper miner Discovery Metals (AIM: DME) added 3.7% and 3%.

Russia operating copper and nickel miner Amur Minerals (AIM: AMC) and copper and nickel explorer Regency Mines (AIM: RGMLaterite nickel specialist European Nickel (AIM: ENK) both shed more than 2%.

Banks, insurance, private equity

Major banking stocks didn’t show much movement in early trade. Bailed out banks Lloyds (LSE: LLOY) and Royal Bank of Scotland (LSE: RBS) declined marginally, as did Standard Chartered (LSE: STAN), while Barclays (LSE: BARC) and HSBC (LSE: HSBA) posted insignificant gains.

Insurers also were mostly flat. Legal & General (LSE: LGEN) climbed 1.3%. Friends Provident (LSE: FP), Prudential (LSE: PRU) and Standard Life (LSE: SL) rose marginally, while Aviva (LSE: AV), Old Mutual (LSE: OML) and RSA Insurance Group (LSE: RSA) were just below the opening level.

Private equity group 3i (LSE: III) added less than 1%.

Large and Mid Cap News

International Energy Services company, the John Wood Group (LSE: WG.) updated investors ahead of December’s full year trading results. Conditions remain broadly in-line with pervious management guidance, with a ‘robust’ in its production support operation.

Small Cap News

Vyke Communications (AIM: VYKE) announced the agreement of a large scale distribution deal with Steen Group LLC to expand the Vyke product suite across Latin and South America. The deal is based on a margin sharing arrangement between the parties. Investors have welcomed this latest development, shares in Vyke  surged 25% this morning.

Asian Citrus (AIM: ACHL), China’s largest orange producer and largest orange plantation owner, announced that it has submitted its application for a new listing on the main board of the Hong Kong Stock Exchange (HKEx). On London’s AIM market shares in Asian Citrus rose 2% this morning. The Hong Kong listing was first proposed early this year in August.

Publishing Technology PLC (AIM: PTO), a software and services provider for the publishing industry, is teaming up with Japanese content software provider Sunmedia to jointly relaunch the latter’s online publishing platform as a robust new research service.

Omega Diagnostics Group Plc (AIM: ODX) updated investors ahead of next months interim results, the medical diagnostics company announced that turnover for the business is approximately 9% ahead of the same period in 2008 at £2.87 million. Growth continued in most regions and trading remains in line with management expectations.

Kalahari Minerals PLC (AIM: KAH), the exploration and evaluation group with a portfolio of uranium, copper and base metal interests in Namibia, said a new high grade zone has been discovered on the Rossing South uranium prospect, with one hole intersecting 53 metres at 1,616 parts per million triuranium octoxide (U3O8).

Sirius Petroleum PLC (AIM: SRSP) said it was granted an import licence for refined oil products from the Nigerian Ministry of Petroleum Resources. The news sent the stock up 12 percent in early trades, where it pretty much stayed throughout the morning session.

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