SHANGHAI, Mar. 25 (SMM) – Cyprus’s parliament voted in favor of capital controls, national solidarity fund and bank restructuring last Friday. Bill on levying deposit tax on bank depositors will be voted later. Insurance deposit exceeding EUR 100,000 at Laiki Bank, Cyprus’s second largest bank, may be confiscated by the government, while the part less than EUR 100,000 will handed over to the country's largest bank, Bank of Cyprus. The reorganization will help the government get EUR 3.6 billion. Market worries that Cyprus may default eased after the country reached an agreement for the Greek Piraeus Bank to acquire Cypriot banks' branches operating in Greece. After Cyprus reached an agreement with Greece on Greece’s acquisition of several banks in Cyprus, investors widely believe the country will be able to secure bailout fund. Stock markets in the US and Europe closed up as a result. LME copper hit a high of USD 7,687/mt, but met resistance at the 10-day moving average due to a lack of massive buying. Finally, LME copper closed at USD 7,668/mt.
Worries over the Cyprus debt crisis have eased for now. LME copper should move within USD 7,620-7,700/mt during the Asian trading session on Monday. The Shanghai Composite Index will fluctuate at high levels, helping SHFE 1307 copper contract prices move in the band of RMB 55,600-56,200/mt after a high opening. Spot copper premiums are expected between RMB 20-120/mt.