Kumba stays on upward trajectory
But external factors may yet add to iron-ore volatility
Shares in mining group Kumba Iron Ore jumped a further 8.46% last week, adding to gains for one of the best-performing stocks on the local bourse in 2017. This is despite an uncertain outlook for iron-ore prices. Economic data releases, particularly from China, have supported commodities in recent weeks, with iron ore extending recent gains on Friday after Chinese steel mills cut production by less than was expected, amid environmental efforts by authorities. In the longer term, analysts are watching for any effect of US President Donald Trump’s push for China to reduce excess steel capacity, after Trump began a trip to Asia on Friday. Political moves in China, as it proceeds with the $1.3-trillion One Belt One Road infrastructure project are also being watched. The JSE-listed Anglo American subsidiary was benefiting from momentum on global markets but might be trading a little ahead of what was considered fair value at present, said IG senior market analyst Shaun Murison. The share...
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