‘Smart Trade Group’: Copper and those mining it stand to benefit as China’s economy turns the corner.

2009-04-27 10:41:56 -

‘Smart Trade Group’, the boutique brokerage firm, is apparently adding FTSE 100-listed copper miner, Antofagasta, to its conviction buy list.

Sources familiar with analysts at ‘Smart Trade Group’ said the firm believes that the stock has begun a firm upward trend since touching a 52 week low of 272p on 24thOctober 2008.

One of the sources cited encouraging news from China on its economic recovery as possibly playing a role in the firm’s decision.

‘Smart Trade Group’ apparently see the statements from Beijing as signaling that it may be ready to increase its stockpiles of copper in preparation for the continuation of large infrastructure projects in the years going forward, a situation which would benefit Antofagasta which owns and operates mines in Chile.

The recommendation was made in an unscheduled communiqué to the firm’s clients and suggested that as the stock is currently trading in the region of 530p, there was strong upside potential to return to the 800p in the short to medium term as confidence in the world economy returned in the months ahead.