14 June 2006

China story remains intact...

Bloomberg.com: Australia & New Zealand: "``Mining stocks have fallen along with commodity prices, but analysts never had spot prices in their valuations,'' said Hans Kunnen, who helps oversee about $70 billion at the country's largest money manager, Colonial First State in Sydney. ``Earnings upgrades for mining stocks are still possible and the China story remains intact.''
China's industrial production expanded at the fastest pace in two years in May. Output climbed 17.9 percent to 706 billion yuan ($88.2 billion) after rising 16.6 percent in April, the Beijing- based National Bureau of Statistics said in a statement today.
The country last year leapfrogged the U.S. to become Australia's second-biggest export market after Japan, according to government figures. Exports to China surged 50 percent to A$18.4 billion in 2005, lifting China's share of overseas shipments to 10.5 percent from 8 percent in 2004.
China accounted for 16.2 percent of BHP's sales in the six months ended Dec. 31, up from 12.6 percent in the last fiscal year.
The S&P/ASX 200 Index's futures contract for June rose 0.8 percent to 4863. The broader All Ordinaries Index added 0.3 percent to 4821.7.
The following shares also rose or fell. The stock symbols are in brackets after the company names. "

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