 RUSSIA IN FACTS |
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11 March 2003 13:30
WMC Resources shares fall on back of nickel prices
MELBOURNE, March 11 AAP - Shares in WMC Resources Ltd lost nearly three per cent today on the back of falling nickel
prices. Nickel dropped to $US8,440 a tonne on the London Metal Exchange last night as fears over supply cuts eased.
Analysts today said the drop had an immediate impact on WMC Resources, the world's third largest nickel producer.
The miner's shares dropped to a low of $3.65 before closing 10 cents down at $3.71. Resource analyst Gavin Wendt
from Intersuisse Ltd said nickel prices had climbed in recent weeks amid speculation industrial unrest in Russia would
disrupt supply. "The short term panic appears to be evaporating," Mr Wendt said. He said nickel had a volatile
price and WMC Resources was closely leveraged to the metal responded accordingly. "It's had a strong run on
the back of nickel and with nickel prices coming off, WMC Resources prices are following." He said the fall was
exacerbated by the general negative mood of the market today. AAP
[AIW [Asia Africa Intelligence Wire]] |
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