Resources riding high again
Resource stocks have outperformed industrial stocks for the second month in succession, according to Ausbil partners.
The resource stock index climbed just over 8 per cent in March, compared with the industrial index which rose just under 3 per cent. The All Resources was up 1.5 per cent in February compared to the All Industrials which fell 0.5 per cent for the month.
Ausbil says resource stocks were buoyed by energy stocks which gained an average of 15.7 per cent during March on the back of better oil prices and a generally improved energy outlook.
Ausbil's director of equities, Paul Xiradis, says it is not clear whether the recovery in base metal prices which boosted resource stock performance is sustainable.
"There are mixed signs from Europe but in Asia the worst seems to be over," he says.
"Should industrial production in Asia continue to accelerate, balanced by global production cutbacks by high cost producers, it is likely 1999 will herald a low point for commodities."
Stand out stocks in the resource sector for March included Southern Pacific Petroleum (up 34 per cent), Oilsearch (up 33 per cent), Newcrest (up 28 per cent) and Woodside Petroleum (up 22 per cent). For industrials, success for investors with holdings of Burns Philp (up 34 per cent), ERG (up 46 per cent) and Computershare (up 34 per cent).
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