Diversified heavyweight RIO rallied +3.5% on Thursday, aided by iron ore futures gaining 2.9% in Singapore and copper rising 1.5% on futures markets. The miners have endured a really tough 2024, and if we see some switching out of the high-flying banks, they could rapidly pop 10-20%. Large-cap miners were strong overnight in the UK and the US as economic optimism supported the embattled sector. At this stage, it’s important to remember the resource stocks are only addressing some significant underperformance. We will need to see ongoing strength in the underlying commodities to compound these gains.
- We are bullish on RIO moving forward, but we’re not yet convinced it’s time to chase strength given our current overweight stance towards materials.
MM is bullish towards RIO
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