More than a year after the S&P 500 lost about 30% of its value, UK miners are still recovering from the mining bust.
Read more: The MSCIs Paul Evans and Peter Jones both point to a rise in UK mining shares, which rose by 0.5% to 3.65p in 2017, as evidence of recovery.
But it’s not just shares that have recovered.
Many companies are also investing in new equipment and technology.
MSCi’s Paul Edwards pointed out that UK mining companies are still buying up new equipment from suppliers in China, India and Indonesia, and also are buying up other metals such as zinc, copper and gold.
Mining stock pickings and stock market gainsThe MSC’s Paul Davies also pointed out a rise of 0.2% in the SPSS UK index for mining stocks in 2017.
That’s the first rise in SPS, the world’s best-known index of global companies, in more than a decade.
A look at the SSPUK mining index shows that shares of companies that were once considered to be “too small” in the mining market have started to make inroads.
In 2017, SPS shares gained 0.7% compared with a gain of 2.3% in 2016.
The SSP shares have also risen in the last three years, from 7.7p in 2016 to 8.1p in 2018.
This means that in five years, they’ve risen by 7% and 3% respectively.
S&!&gt;S&s;P&g;SSP shares rose by 10% over the same period, which suggests that in 2018, the stock market is still very much a safe haven for those companies that are growing and will probably be able to sustain that growth.
Paul Davies of MSC International pointed out in an interview with Bloomberg TV that if you look at what’s happening in the stock markets, we’re not even close to being back to where we were in 2015 or 2020.
And it’s because of this, that the mining industry is in a very strong position, which is why the stock pickers and the markets are so bullish on UK mining.
Paul Davies is the head of investment strategy at MSC, an advisory firm that specialises in investing in emerging markets.
His latest book, The MOST EASY MONEY IN THE WORLD: Investing in the Real Economy, is published by Penguin Books.
Follow Paul Davies on Twitter @msc_investor.