Gujarat NRE Coking Coal Limited announced that it has finalized a further Off Take Agreement with Jindal Steel & Power Limited (JSPL) whereby JSPL would have the option to acquire an additional 200,000 tonnes of Run of Mine coal annually from the Company at a benchmark linked market price. As part of the agreement, the Company will issue and allot a further 30,000,000 fully paid ordinary shares to Jindal Steel & Power (Mauritius) Limited at $0.25 per share raising USD 7,500,000. Based on the last traded data of the GNM scrip, this placement represnts a premium of approximately 47% to the current market price. The allotment of 30 million fully paid shares to Jindal Steel & Power (Mauritius) Limited will be done under the limit available to the Company under ASX listing Rule 7.1. Continue reading Gujarat NRE Coke Finalizes New Coal Offtake Agreement with JSPL
Category Archives: Indian Stock Market
Crude Oil Prices and Global Economic Recovery
Monday, 02 April 2012: China reported positive news on their industrial production over the past weekend, which should give some positive support for global markets and commodities. The current Crude oil price of $105 is about $30 more than its 5 year futures, which indicates that crude oil prices can come down if favorable political events take place to reduce middle-east geo-political tensions, but the chances of such positive events is slim, so we will have to work with constant upward movement in crude oil prices till some event creates genuine risk to crude oil prices.
As of now, a significant amount of risk capital has moved into crude oil, because global economic growth scenario looks more likely than global recession. Meanwhile, Natural Gas prices have been hitting 8 year lows, and huge price variations from $2 per mmbtu in USA to $8 per mmbtu in India/Asia because it is not mobile like crude oil. Continue reading Crude Oil Prices and Global Economic Recovery
China reduces Reserve Requirement Ratio by 50bp
China’s central bank said over the weekend it will lower the reserve requirement ratio (RRR) that banks must hold as reserves to 20.5 percent from 21 percent, effective Friday. This 50 basis points (bp) reduction will free up tens of billions of dollars for loans at a time when the growth rate is expected to drop from last quarter’s 8.9 percent to closer to 8 percent. This is the second rate cut in two months.
Chinese real construction companies, and global commodity stocks, especially base metals like copper and aluminium, should benefit from this move. Investors hoping for more lending in the real estate sector pushed up Chinese property shares and banks. Hong Kong-listed China Resources Land Ltd. rose 1 percent and China Overseas Land & Investment Ltd. added 1.3 percent. China Construction Bank Corp. added 1.1 percent.
World stock markets were also positive on hope that Greece will clinch the aid to avoid bankruptcy. Whether Greece can actually implement and deliver an auterity plan is not a consideration for now! Continue reading China reduces Reserve Requirement Ratio by 50bp