Although the market has been steadily rising for some time it is perhaps difficult to believe that there have been losers also, most notably in the mining sector. This sector has seen quite a sell off in the last month, but some have been falling pretty relentlessly for longer than that. Here's a list of some FTSE350 mining stocks and their percentage fall in the previous 3 months.
African Barrick Gold -59.84%
Kazakhmys -57.54%
Hochschild Mining -45.59%
Fresnillo -30.50%
Antofagasta -30.47%
The 3 month change in the index is -15.94% and it is down -15.42 over the previous 12 months.
So, some hefty falls there and you do wonder if the world economy is in recovery mode, why are so many miners, the providers of commodities that go into making everything falling so steeply? Some of these are gold and silver miners, a sector that can be very volatile even when the price of gold is steadily going up, but the falls seem to be across the board even when good individual company results are produced.
Bargain hunters may well want to keep an eye on the sector, but you may also want to watch for a recovery on the charts first as falls for the miners can be relentless. Get in at the wrong time and you can be looking at big losses. If anything this has been the sector to short, but could it also be a sign that the wider market may follow if economic growth forecasts don't live up to expectations as the year goes on?
No comments:
Post a Comment