Rudi Filapek-Vandyck has been a journalist for nearly three decades, of which nearly two decades has been in finance. After successfully establishing a leading financial news service in Europe, Rudi moved to Australia where he founded FNArena, an online service dedicated to providing independent and unbiased market analysis. He has also develope...View more >
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As the outlook for the mining and resources sector continues to soften, brokers are moving to adjust forecasts, which is contributing to the ongoing rounds of downgrades in this sector.
A glut of mining companies received downgrades by Deutsche Bank during the week, as they revised down their expectations for the gold price. But some mining companies also appeared on the upgrade list..
Last week was a busy week for brokers, with a total of 27 recommendations. There was a lot of activity around some stocks, with actions on Boral, Coca Cola and Downer EDI quite conflicted.
Resources stocks featured prominently on both the upgrade and the downgrade side of the share market as concerns around commodity prices drove movements. Atlas Iron and Orica were upgraded.
Quarterly reporting, especially from the miners, kept brokers busy with their recommendations last week. Momentum was skewed towards the downside, with 14 calls lowered versus nine recommendation incr..
Downgrades were the order of the day last week for brokers, as many cut their commodity forecasts, which results in poorer outlooks for some miners.