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Mineral-related Stocks Show Strong Growth on Gold Price Rise

Posted on: Tue, 24 Nov 2009 06:21:00 EST

Symbols: ZIJMF

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SHANGHAI, Nov 24, 2009 (SinoCast Daily Business Beat via COMTEX) --
ZIJMF | Quote | Chart | News | PowerRating -- Chinese-concept mineral stocks performed strongly on Monday, propelled by the international gold price rise.

In the A-share market of China's Mainland, Zijin Mining Group Co. (601899.SH) closed up 2.2% at CNY 10.15 per share; Jiangxi Copper (600362.SH) closed up 2.7% at CNY 43.36 per share; Shandong Gold-Mining Co., Ltd. (600547.SH) closed up 4.4% and Zhongjin Gold Co., Ltd. (600489.SH) closed up 2.0%. As for the stock market in Hong Kong, Zijin Mining Group (2899.HK) closed up 4.8% at HKD 8.8 per share; and Jiangxi Copper (0358.HK) closed up 3.5% at HKD 20.3 per share.

The gold price in the spot market of Asia was USD 1,164 per ounce yesterday, a rise 1.2% or USD 14 from the previous trade. Since this year, the gold price has grown about 30% in the international market. Such gold price rise has driven up the prices of other commodities, like the metal, agricultural products and petroleum.

The international copper price rose more than 2% on November 23 and the international zinc price went up 2.3%. In the spot market, the platinum price was up 1% to touch the record high since last September and the oil price in Asia reached as high as USD 78.4 per barrel.

The dominant contract 1006 of the gold futures traded on the Shanghai Futures Exchange closed at CNY 250 per gram on November 19, 2009 representing the price growth for consecutive four trading days.

In the third quarter of this year, the total demand for gold reached 800 tons in the world, a growth of 15% than the second quarter but a decrease of 34% year on year. As for the gold market in China's Mainland, the demand reached 120.2 tons in the third quarter of this year, an increase of 12% year on year. Meantime, the gold price in the third quarter averaged USD 960 per ounce, 10% higher than the same period of last year.

Currently, the gold market in China is booming. With the economic recovery, more and more Chinese people are expected to become the consumers of gold. The Chinese gold market thus is expected to have the strong potential of growth. By this September, China's foreign exchange reserves stood at USD 2.27 trillion, while the 1,054 tons of gold reserves of the country is far less than other major economies.

(USD 1 = CNY 6.82)

Source: www.cnstock.com (November 24, 2009)

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