Mining listings will test investor mettle

Thursday 21 February 2008 at 17:59

Equity analysts have warned that fund managers, which have invested heavily in mining stocks in the last year, are becoming wary of the sector due to concerns over the potential impact of a US recession on commodity prices.

One mining analyst said: "If China decouples from the US market then commodity prices will continue to grow but that is not an easy argument to make at the moment. Institutional investors still think that the US will have an important impact on commodity prices."