Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (47205)	3/11/2004 12:04:13 AM
From: elmatador	Respond to of 74559

Miners lose favour as China takes a breather By Jane Williams March 11, 2004 Profit-takers are moving out of Australian resource stocks as commodity prices plateau and China takes steps to slow down its economic growth rate. theage.com.au But analysts yesterday said the pause in growth was temporary. A slowdown in China's spending was giving markets a chance to absorb soaring prices, strengthening the sector's position in the long term. The Chinese Government last week announced plans to cut infrastructure and boost spending on jobs and agriculture. It set a target of 7 per cent gross domestic product growth for 2004, down from 9.1 per cent last year. CommSec chief equities economist Craig James said the lower target would prevent the Chinese economy overrunning itself and help maintain a strong long-term market. "It is clearly in Australia's interest for China to not get hooked into a boom-bust situation," he said. Signs of the commodity price surge easing have spurred investors to take a profit on resource holdings. "Across the board, I sense, with the US (recovery) perhaps slowing as well, there's a bit of unknown out there," said one analyst. "I think we're in for a pause; the market has turned to banks and infrastructure." Resource stocks fell further yesterday. "Australian resource companies have had a stellar run over the last six months of 2003 and early 2004," Mr James said. "Those gains have been worked off super strong demand for mining products - not just base metals but coal, iron ore and oil. "Prices look as though they're starting to top out at historically high levels. (But) while the rapid period of growth is over . . . the long period of sustainable high prices looks to remain on track." A Goldman Sachs JBWere report says rising demand for copper, nickel and zinc will outstrip supply until at least 2013. The Australian Bureau of Agriculture and Resource Economics expects mineral and energy exports in 2004-05 to rise 1 per cent, and nickel to soar.