Shares of copper mining companies are experiencing a significant rally.
At the time of writing, MMG (HKEX: 01208) has surged 9.05% to HK$9.76.
JIANGXI COPPER (HKEX: 00358) is up 8.22%, trading at HK$37.38.
CHINFMINING (HKEX: 01258) has gained 8.16% to reach HK$15.50.
CMOC (HKEX: 03993) is also higher, rising 7.34% to HK$20.18.
The strong performance follows a rally in London Metal Exchange copper prices to a more than one-week high on Monday.
This move was supported by a peace agreement between the US and Iran, which eased market concerns over global economic growth and bolstered optimism for metal demand.
A research report from CITIC Securities notes that as macro-level pressures ease and fundamental factors like extreme weather, grid equipment demand, and explosive AI-related consumption materialize, copper prices are expected to potentially challenge the $15,000 per tonne level.
The report further highlights that the current investment appeal of the copper sector is becoming increasingly prominent, driven by a combination of earnings potential and valuation upside.
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