Small Resources on the Rise
The small end of the resources sector has been showing unusual life. Over three quarters of the stocks making up the small resources share price index were trading above their 15 week moving average on Friday and the majority of stocks in the index were trading above the 52 week average. The number of advancing stocks has beaten the number of declining stocks over the past three months. Since 3 February, the index has recovered by 19.1% against a 14.8% rise in the S&P/ASX 100 resources index. Meanwhile, the banks (-0.2%) and small cap industrials (-1.1%) have both posted negative returns. Our PortfolioDirect commentary on recent market conditions is here (VIEW LINK)
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
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