Ripple effects from the slowdown of growth in China and Europe will be felt in the Australian mining sector.The CEO of Australian Foundation Investment Company,Ross Barker,urged mining companies to curb their spending on infrastructure projects while commodity prices fall in the difficult global environment.That is obviously something we would encourage,because we don't want to spend large amounts of money and not get good returns,Mr.Barker told the Australian Broadcasting Corporation.There is much more economic growth to feed through China and other emerging economies,but on the other hand,the period of huge cash flows from very high commodity prices will be coming to an end.There are still an enormously large number of mining projects in train.The big question for intermediate to long term investors is,how many of them will actually get up,the Australian fund executive asked.
AFI has a market capitalisation of some 4.7 billion dollars Australian,or 4.5 billion American.It owns shares of big miners BHP Billiton and RioTinto.
Asian shares rose in early Monday trading on renewed confidence in the resolution of Europe's debt crisis,and Australian shares were no exception.Japan's falling industrial production number was brushed aside by investors.
At the London Olympics,China led the medals count with 12 total and 6 gold.The U.S. was second with 11 total and 3 gold,while Italy was third with 7 total and 2 gold.
Australian Foundation Investment Company,Ltd.(ASX:AFI)
No comments:
Post a Comment