Share Dealing
Market update (AM): Mining stocks rise amid copper concerns
Joe McGrath, 01 March 2010
Fears about a potential copper shortage following the Chilean earthquake triggered a marked rise in mining stocks this morning.
Kazakhmys led the early gains (Monday 1 March) with a 4.5 per cent rise in its share price to 1401.0 pence (0915 hrs), followed closely by Fresnillo, which rose 3.7 per cent to 778.5 pence.
The latter is due to declare results for the year-end results tomorrow while Kazakhyms will release a trading update on Thursday (4 March), excluding the contribution from ENRC plc in which Kazakhyms holds a 26 per cent interest.
Elsewhere, this morning’s results from banking group HSBC Holdings, while in line with forecasts, did little to impress investors due largely to the continued high level of impairments in the business’ global consumer finance divisions.
Despite this, underlying pre-tax profits were up £3.1 billion ($4.7 billion) to £8.8 billion ($13.3 billion) excluding the goodwill impairment charges in North America from 2008.
Stephen Green, group chairman of HSBC Holdings, said huge challenges remain for the business.
He explained, ‘While emerging markets are leading global recovery and seem certain to drive the majority of the world's growth in the generation ahead, recovery in developed markets has been slow to start, and unemployment remains high. Furthermore, the global rebalancing of demand has barely begun.
'The financial crisis brought into stark relief the extent of the imbalances, especially between over-consuming Western economies and high-saving emerging markets. Rebalancing requires structural change and international co-operation, and it will take time.
‘There are also important lessons to learn as we seek to reform the financial system. Few of these lessons are quick or simple, but the need for urgent change is clearer than ever.’
The share price was trading down 3.6 per cent at 693.7 pence (0920 hrs).
Barclays Stockbrokers
Top ten trades
Friday 26 February 2010
Buy
1. Lloyds Banking Group, 14.5 per cent
2. Royal Bank of Scotland, 5.4 per cent
3. Xstrata, 3.0 per cent
4. Barclays, 2.4 per cent
5. Rockhopper Exploration, 1.7 per cent
6. Desire Petroleum, 1.6 per cent
7. Taylor Wimpey, 1.5 per cent
8. Afren, 1.2 per cent
9. Vodafone Group, 1.1 per cent
10. MAN Group, 1 per cent
Sell
1. Lloyds Banking Group, 22.5 per cent
2. RBS, 7.7 per cent
3. Barclays, 5.1 per cent
4. Aviva, 2 per cent
5. Xstrata, 1.8 per cent
6. Serco Group, 1.1 per cent
7. Rio Tinto, 1 per cent
8. Desire Petroleum, 0.8 per cent
9. HSBC Holdings, 0.7 per cent
10. BP, 0.7 per cent
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