MINING stocks have been subject to a bit of profit-taking recently but the dips have provided spread betters with renewed buying opportunities. Mining giant Rio Tinto holds its AGM on Thursday and it has been one of the most popular miners. Capital Spreads quotes 3,952p-3,957p.
Iron ore producer Ferrexpo has been one of the market’s best performers over the past 12 months, rising a staggering 560 per cent from 60p to a high of 396p last Tuesday. The shares have surged since the beginning of February, almost doubling in price. While the profit-taking saw the share price ease back to the 370p area late in the week, this should be temporary. Look out for a re-test of support around 300p or even the 50-day simple moving average at 290p and use these as opportunities to buy. Spread Co offers 370.9p-371.6p.
Closer to home, outsourcing provider Xchanging has underperformed the FTSE 250 by about 18 per cent over the last six months. But if the UK continues to show signs of emerging from the recession, Xchanging’s shares may look a little cheap. A downtrend resistance has restrained the stock since January 2008, so look for a break above the 215p level for a chance to go long with a target of 243p. Spread Co offers a spread of 202.8p-203.2p.
With a World Cup, a weak pound and the prospect of a sizzling summer, pubco Mitchells & Butler should be well placed to make the most of the coming months. But with England risking an early exit from the football amid injury worries and the possibility that August could be a washout, the fizz could easily disappear. The current IG index price is 316.2p-317.9p.