Understanding the Market | CMOC rose over 3% in the morning as tight domestic physical market catalyzed copper price increase; Citigroup is optimistic about the company's business fundamentals
CMOC rose over 3% in the morning, and as of the time of publication, it rose 3.09%, reported at HKD 19.04, with a transaction volume of HKD 1.072 billion. Citigroup released a research report stating that it has added CMOC to its 30-day upward catalyst observation. Citigroup is optimistic about the company's business fundamentals, mainly due to the TFM and KFM expansion projects that will increase copper and cobalt production, as well as the demand driven by renewable energy, which is expected to support copper prices in the medium to long term. The bank stated that the main catalyst for rising copper prices comes from signs of tightening in the physical market in China, predicting that copper prices will reach USD 14,500 per ton within 3 months and USD 15,000 per ton by the end of the year. For every 10% increase in copper prices, it is predicted that CMOC's net profit in 2026 will increase by 10%. In addition, Citigroup believes that given the recent correction in stock prices while commodity prices continue to rise, investor concerns about interest rate hikes have already been reflected in stock prices. Meanwhile, Citigroup's U.S. economic research team believes that as the U.S. unemployment rate rises, there will be interest rate cuts in October, December, and January
According to Zhitong Finance APP, CMOC (03993) rose over 3% in the morning, and as of the time of writing, it increased by 3.09%, trading at HKD 19.04, with a transaction volume of HKD 1.072 billion.
Citigroup released a research report stating that it has added CMOC to its 30-day upward catalyst observation. Citigroup is optimistic about the company's business fundamentals, mainly due to the TFM and KFM expansion projects that will increase copper and cobalt production, as well as the demand driven by renewable energy, which is expected to support copper prices in the medium to long term. The bank indicated that the main catalyst for rising copper prices comes from signs of tightening in the physical market in China, predicting that copper prices will reach USD 14,500 per ton within three months and USD 15,000 per ton by the end of the year. For every 10% increase in copper prices, it is forecasted that CMOC's net profit will increase by 10% in 2026.
In addition, Citigroup believes that given the recent pullback in stock prices while commodity prices continue to rise, the bank expects that investors' concerns about interest rate hikes have already been reflected in stock prices. Meanwhile, Citigroup's U.S. economic research team believes that as the U.S. unemployment rate rises, there will be interest rate cuts in October, December, and January
