The Australian stock exchange is sensitive to mining stocks and commodities, as the top holdings within their exchange traded fund (ETF) focus on this aspect of their economy.
Although markets began last week in positive territory, the mining stocks Rio Tinto and BHP Biliton both took markets lower upon recent news. Local shareholders voiced their concerns over the controversial Chinalco deal at the meeting, just as investors did at last week’s London AGM, reports Terry Mc Cran for Courier Mail.
The speculation that the two major mining companies had been taken over concerning the Chinalco deals has many believing that downside risk is going to outweigh short-term gain. For investors, a commodities investment in an ETF holding one or both of these companies can be worth its weight, as the diversification alone can benefit a portfolio.
Full Story: http://www.etftrends.com/2009/04/how-to-access-commodities-with-australias-etf.html