Sector movers: Mining stocks rebound as copper and gold prices gain

Resource stocks were on the rise on Thursday, rebounding strongly after a sharp sell-off the previous session, as copper prices recovered.

Copper, having dropped over 5% to $5,548 a metric tonne on Wednesday, was rising 2% to $5,666 in afternoon trade after data from China showed that credit growth surged last month.

Mining stocks dropped the previous day, with copper producers faring the worst as the metal slumped to its worst level in over five years on the back a downgrade to growth forecasts at the World Bank.

BHP Billiton, Anglo American, Rio Tinto and KAZ Minerals were all in demand in afternoon trade.

Precious-metal miners such as Randgold Resources, Fresnillo, Polymetal and Acacia Mining were all putting in decent gains as gold rose as high as $1,261.10 an ounce, a four-month high.

Analysts from UBS said gold miners are “well-placed to benefit from FX and oil weakness” compared with their industrial metal peers.

"The gold price is currently broadly in-line with its 2014 average; should gold prices remain stable in our view gold miners are well
placed to take advantage of cost tailwinds in 2015 versus their bulk & base metal peers," the bank said.

Top performing sectors so far today
Oil & Gas Producers 6,749.63 +2.36%
Oil Equipment, Services & Distribution 14,730.33 +1.80%
Beverages 14,144.03 +1.72%
Mining 13,077.91 +1.69%
Life Insurance 7,526.39 +1.50%

Bottom performing sectors so far today
Industrial Transportation 2,746.30 -1.35%
General Retailers 2,870.01 -1.20%
Fixed Line Telecommunications 4,515.13 -1.10%
Electricity 8,794.74 -0.63%
Financial Services 8,315.20 -0.63%