The resources sector finished June on a weak note with the small resources share price index down 1.7% on Monday

John Robertson

PortfolioDirect

The resources sector finished June on a weak note with the small resources share price index down 1.7% on Monday. The index was ahead for the month by just 1.5% but that was enough to break an eight year sequence of negative June outcomes (see my Wire from 27 June). That is a plus for the sector. Sector volatility has also been falling. Usually (i.e. over the last 20 years), this has coincided with rising markets although, so far this year, the response has been only enough to keep the index largely unchanged. There are signs the market is stabilising after a lengthy re-pricing of asset values. Among the 50 stocks currently comprising the small resources index, prices of 27 advanced in June and three were unchanged. Only 46% of stocks closed the month above their three month moving averages.


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John Robertson
John Robertson
PortfolioDirect

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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