MARKET TALK: RSPT Unlikely To Be Implemented In Full - S&P

25th Jun 2010 11:27

1027 GMT [Dow Jones] The new Australian prime minister's apparent willingness to renegotiate the proposed Resource Super Profits Tax, combined with the looming election featuring an opposition which is against the plan, suggest the tax is unlikely to be implemented in full, says S&P Equity Research. Notes that prior to Thursday's events, S&P thought the plan had a 50% chance of approval and says it maintains this stance. Adds the mining industry has acknowledged the need for tax reform. Given this and S&P's confidence over the demand outlook, it maintains its 4000p target price and strong buy recommendation on Rio Tinto (RIO.LN) and its 2300p price target and buy recommendation on BHP Billiton (BLT.LN). Rio shares -2.4% at 3202p and BHP shares -2.2% at 1877p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 25, 2010 06:27 ET (10:27 GMT)