Ukraine conflict: commodity rally creates winners among Chinese oil, mining groups
- Prices of commodities from aluminium to oil capped thier best week since at least 2018, fuelling gains in Chinese mining stocks
- ‘Gold is well on its way to becoming the ‘TINA’ (there is no alternative) safe-haven asset in coming years,’ Schroders says
“The Russia-Ukraine crisis could disrupt commodity supply and push up inflation,” said Ye Bingnan, analyst at CMB International, in a report last week. “Russia is an important supplier of oil, gas, wheat, nickel, palladium and chemical fertiliser.”
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Ukraine says Russia violates ceasefire as Putin warns no-fly zone would be declaration of war
Here are a handful of winning stocks as the war enters its second week and sanctions on Russian entities and individuals are set to bite harder.
Oil producers
Oil producers have been among the biggest beneficiaries. Brent hit more than US$129 a barrel on Monday, the highest since July 2008. PetroChina rose 3.8 per cent and CNOOC gained 4 per cent since February 24.
“Energy [is] continuing to rally and lead the market as Russian oil supply is perceived by some key market participants to be at risk of declining” due to sanctions, RBC Wealth Management’s commodities team said in a report published on Thursday.
Base metals
