Eramet: share price rises thanks to China and BofA

(CercleFinance.com) - On Monday, Eramet shares posted the second-biggest rise in the SBF 120 index on the Paris Bourse, thanks to the stimulus measures announced by China, which particularly benefited mining stocks.


On Monday, at the meeting of the Political Bureau of the Central Committee of the Chinese Communist Party (CCP), China unveiled a series of initiatives designed to revive growth that has been stalled for many months.

The aim is to implement a 'more proactive' fiscal policy and a 'moderately flexible' monetary policy next year.

The idea is also to strengthen unconventional counter-cyclical adjustments, intensify policy coordination and make macroeconomic regulation more forward-looking, targeted and effective.

'The country must vigorously stimulate consumption, improve investment efficiency and increase domestic demand on all fronts', the meeting concluded.

These announcements benefited the stocks most sensitive to China, namely cyclical sectors such as metals, raw materials and mining groups.

Antofagasta (+4%), Rio Tinto (+4%), Thyssenkrupp (+3.5%) and Glencore (+3.4%) were among the biggest risers on the STOXX Europe 600 index on Monday.

At a time when European growth is relatively sluggish, a boost to the Chinese economy is welcome and could benefit the eurozone through trade," commented Alexandre Baradez, Head of Market Analysis at IG France.

On the Paris Bourse, Eramet shares were up by more than 6% by midday.

In addition to the positive effect on the mining sector as a whole, the French manganese, nickel and lithium producer benefited from favorable comments made by analysts at Bank of America.

The American investment bank, which is maintaining its buy recommendation and price target of 100 euros on the share, said it saw the stock as "deeply undervalued" in a note released this morning.

Copyright (c) 2024 CercleFinance.com. All rights reserved.