MARKET TALK: Mining Stocks Attractive On Earnings - Ambrian

24th Jun 2010 11:10

1010 GMT [Dow Jones] The change in Australian leadership might be a small positive but is not the reason Ambrian recommends buying mining shares, it says. The brokerage says: "We recommend buying the miners because we believe the sector offers the best earnings (and dividend) growth on the London Stock Exchange." Says there is an air of optimism that the Rudd/Swan orchestrated Resources Super Profits Tax will now see some changes from the proposed 40%, which various mining companies claimed would see their total tax rate rise from 40%-50% to 50%-57%. Still, traders note that Treasurer Wayne Swan, who has been made deputy leader, was the frontman behind the tax, so it's unlikely there will be any real turnaround in the policy. Mining stocks are in the red; Kazakhmys -3.3%, Lonmin -2.9% and Fresnillo -2.5%. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 24, 2010 06:10 ET (10:10 GMT)