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MARKET TALK: Metals Price Surge Boosts China Metals Shrs

Wednesday, Oct 18, 2006
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China metal stocks up strongly tracking sharp gains in metals prices: Yunnan Tin (000960.SZ) +10% at CNY6.91 after LME 3-month tin's break above $10,000/ton overnight; Yunnan Copper Industry (000878.SZ) +3.5% at CNY10.48, Jiangxi Copper (600362.SH) +3.2% at CNY5.18 with Shanghai copper futures surging on overnight LME jump. Metal shares to stay strong near term on optimism surrounding 3Q earnings, says Shanghai-based analyst (notes most listed firms required to issue 3Q results by end-October). Jiangxi Copper tipping 3Q net profit to have more than quadrupled on lower hedging losses, high copper prices; expects full-year earnings to more than double.

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