Yahoo Finance Why Freeport-McMoRan’s Nice Little Rally Is Losing Steam
Why Freeport-McMoRan’s Nice Little Rally is Losing Steam
Freeport-McMoRan’s rally
Freeport-McMoRan (FCX) has had a nice little rally, recovering almost 50% from its January lows. The year started on a somber note for the materials sector. Most base metal companies hit fresh 52-week lows in January 2016. However, mining stocks (XME) have recouped most of their losses in the last couple of weeks.
Freeport-McMoRan has led the mining pack in this rally—just like it bore the brunt when mining shares witnessed a massive sell-off earlier this year.
The graph above shows copper producers’ 2016 price movements. Freeport-McMoRan and Turquoise Hill Resources (TRQ) have seen a downward price action of more than 20% year-to-date. Southern Copper (SCCO) is trading roughly flat this year. However, Teck Resources (TCK), which was among the most battered mining stocks in 2015, is up 18% since the beginning of the year.
Southern Copper was among the better-performing copper companies last year also. You can find out more about SCCO in our series Southern Copper: A Business Overview of a Copper Giant.
Series overview
The metals rally has taken most investors and analysts by surprise. However, the rally has seemed to fade away as realism about a global economic slowdown is setting in. In this series, we’ll look at the different factors that have driven Freeport-McMoRan’s price movements in the last few days. We’ll look at some industry- and company-specific factors that Freeport investors should watch out for. Finally, we’ll explore the possibility of Freeport breaching its January lows.
In the next part, we’ll explore what factors are supporting Freeport-McMoRan’s recent upward price movement.
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