Strong commodity prices suggest sell-off in mining stocks overdone

By Barry FitzGerald – Livewire Markets

A sniff of peace in our time in the Middle East proved to be enough to fire up the share market, particularly the resource sector.

That the sector outperformed its mundane industrial cousins was no mean feat given oil prices across the main benchmarks of more than US$100/bbl is as good as an indicator as there is that it’s not over yet in the Middle East.

Still, the outperformance should not have been a surprise given resources equities were particularly hard hit in the market sell-off that followed the start to the war five weeks ago.