Understanding the Market | Non-ferrous stocks continue to rise as the dollar hits a new low in over three years; institutions remain optimistic about investment opportunities in the non-ferrous metals sector
The non-ferrous stocks continue to rise, with CMOC up 6.39%, JIANGXI COPPER up 6.03%, and TIANQI LITHIUM up 5.49%. The US dollar index fell below 97.0, hitting a new low for 2022. Analysts believe this is influenced by multiple factors, including speculation about personnel changes at the Federal Reserve, reduced geopolitical risks, and uncertainty in trade policies. Guolian Minsheng Securities expects the allocation ratio of the non-ferrous metal sector to increase in the first quarter of 2025, with copper, gold, and aluminum as key allocation varieties, and overall optimistic about investment opportunities in non-ferrous metals
According to Zhitong Finance APP, non-ferrous stocks continue to rise. As of the time of writing, CMOC (03993) is up 6.39%, trading at HKD 7.99; JIANGXI COPPER (00358) is up 6.03%, trading at HKD 15.12; TIANQI LITHIUM (09696) is up 5.49%, trading at HKD 28.8; Zijin Mining (02899) is up 4.93%, trading at HKD 20.65; China Hongqiao (01378) is up 2.46%, trading at HKD 18.32.
In terms of news, on June 26, the US dollar index briefly fell below the 97.0 mark, hitting a new low since February 2022, currently reported at 97.29. Analysts point out that the current dollar trend may be influenced by multiple factors: speculation about potential personnel changes at the Federal Reserve has boosted expectations for easing; geopolitical risks (Russia-Ukraine and the Middle East) have cooled, weakening safe-haven demand; and the countdown to Trump's tariffs has also intensified uncertainty in trade policy.
Guolian Minsheng Securities noted that in the first quarter of 2025, the fund's allocation ratio to the non-ferrous metals sector increased by 1.07 percentage points to 4.59%, with copper, gold, and aluminum becoming key varieties for increased allocation. Multiple factors are catalyzing the rise in gold prices, and silver is expected to see a rebound; the supply-demand pattern of rare earths is marginally improving, and export controls are catalyzing the enhancement of strategic value; the cyclical fundamentals of copper and aluminum are strongly supported, and an upward trend is worth looking forward to. Against the backdrop of ongoing uncertainty in the current economic landscape, investment opportunities in the non-ferrous metals sector remain optimistic
