Deutsche Bank Sees Huge Upside In Asian Resources Stocks

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By Terry Hughes

In a time of extreme volatility, the analysts at Deutsche Bank point out that Asian resources equities have underperformed far worse than metal prices.

Although some of this can be put down to the perception of higher risk, the analysts see fundamentals for base and precious metals as strong.

This supports their view that metal prices will stabilise and an equities recovery will follow.

Three stocks that have traded very closely to their respective metal prices are Hong Kong’s Jiangxi Copper and Zijing, as well as India’s Hindalco.

The stocks have underperformed recently and as copper, gold and aluminium prices stabilise the analysts expect the stocks to outperform.

Deutsche forecasts 40% upside in Hindalco, 36% in Jiangxi and 29% in Zijing.

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