Credit Suisse Raises Mining Rating on Chinese Industrial Growth
2007-01-24 03:43 (New York)
By Alaric Nightingale
Jan. 24 (Bloomberg) -- Credit Suisse Group, Switzerland's
second-largest bank, increased its rating of the mining industry
because China will spend more to bolster industrial production.
The bank lifted its recommendation of mining stocks to 40
percent overweight from 30 percent, analysts led by London-based
Andrew Garthwaite said in a note yesterday.
Shares of mining companies ``look cheap,'' Credit Suisse
said. ``Non-tech'' industrial production in China, the world's
biggest user of metals such as copper and zinc, will ``trough''
in the second quarter, it said.
China's economy will grow at 10 percent or more this year,
Credit Suisse added. The world's fastest-growing economy helped
push prices for copper, aluminum and zinc to records last year.
BHP Billiton Ltd., Anglo American Plc and Rio Tinto Group,
the world's three largest mining companies by sales, are rated
``outperform'' by Credit Suisse.
--Editor: Casey |
