Tag - SHZ

China's warp-speed industrialization and huge manufacturing machine have created a voracious appetite for metals and mining commodities. The almost insatiable demand has driven the country to hunt for natural resources in almost every corner of the globe. China has a dominant presence in several resource-rich African countries, and it has also managed to secure access rights to significant reserves of mineral resources in Latin America and Southeast Asia. Chinese officials have also expanded bilateral scientific and research cooperation in the field of mining with countries such as Iran and Russia. And Chinese companies are eyeing investment opportunities in large mining concerns in Australia, Brazil and India.
 
But the resource-hungry nation is scouring not only the far reaches of the planet for mineral wealth. It is looking within its borders. As a world leader in reserves and production of several metals and minerals (it is the world’s largest producer of coal, gold, aluminum and copper), China has thus far only scratched its mineral surface. A study by London-based Business Monitor International suggests that increased exploration and mining of its substantial identified resources could potentially make up for the shortfall and provide China with resource security. The Ministry of Land and Resources is doing its part to make China's mining industry more competitive, and the industry is growing by leaps and bounds as metals and mining interests are geared up to tap the country's vast natural wealth.
 
One small player hoping to cash in on China's mining boom is China Shen Zhou Mining & Resources Inc. (AMEX:SHZ), an outfit engaged in the exploration, mining, processing and distribution of fluorite ore, copper, zinc, lead and other mineral products. The company operates mines in both the Inner Mongolia autonomous region and Xingjiang Uygur autonomous region, areas well-known for their high-grade reserves of copper, zinc, lead and fluorite. Its refined fluorite (ores and powder) is sold mainly to chemical companies that use the products in everything from flux — which is important in steel and aluminum production — to Hydrofluoric acid, a substance used, among other things, in the manufacture of pharmaceuticals, Teflon and . . .

The Russell 2000 (NYSE:IWM) fell hard as investors worried about corporate earnings and reacted to news of record high oil prices. The small-cap index dropped 13.54 points, or 1.90%, to 698.38. The Dow Jones Industrial Average let go 49.18 points, or 0.39%, to 12,527.26.

On a year-to-date basis, the Russell 2000 has declined 8.83%, while the Dow has retreated 5.56% and the S&P 500 is down 7.75%.

Small-cap stocks suffered more than their bigger brothers today as fears that the sagging economy will weaken corporate earnings led to a sell-off. United Parcel Service, Inc. (NYSE:UPS) reported after the close on Tuesday it lowered its first-quarter profit forecast. The Atlanta, Ga.-based company is considered a bellwether because its performance is closely related to the sales of other businesses.

More bearish news came after the start of trading following news reports that investment bank Merrill Lynch & Co., Inc. (NYSE:MER) will likely post a first-quarter loss due to its exposure to subprime loans and commercial real-estate debt.

In economic news, the price of oil briefly touched a record high of $112.21 a barrel on news after the opening that inventories unexpectedly fell . . .

The Russell 2000 (NYSE: IWM) moved up as news of a stock buyback program by International Business Machines Corp. (Nasdaq: IBM) overshadowed worrisome economic reports. The small-cap index added 6.86 points, or 0.97%, to 717.32. The Dow Jones Industrial Average (INDU) gained 114.70 points, or 0.91%, to 12,684.92.

On a year-to-date basis, the Russell 2000 has declined 6.36%, while the Dow is down 4.37% and the S&P 500 has decreased 5.93%.

The major U.S. indices interrupted their early-session volatility to post gains on news that IBM has approved a $15 billion stock buyback. The Armonk, N.Y.-based tech giant said that the buyback will boost its 2008 profit.

The announcement came at around 11 a.m. ET, and immediately sent stocks small and large flying.

The U.S. Labor Department reported that producer prices increased 1% in January, more than the expected 0.4%.

The numbers tell us that inflation pressures remain a worry despite the slowing economy.

Meanwhile, the Conference Board announced that its index of consumer confidence fell to a five-year low of 75.0 in February, down from 87.3 in January. A pullback in consumption will spell trouble for the economy, because consumer spending is about 70% of U.S. gross domestic product.

The Russell 2000 (NYSE: IWM) posted a large gain and outpaced the other major U.S. indices on good news from bond insurers. The small-cap index added 15.03 points, or 2.16%, to 710.46. The Dow Jones Industrial Average (INDU) climbed 189.20 points, or 1.53%, to 12,570.22.

On a year-to-date basis, the Russell 2000 has retreated 7.25%, while the Dow is down 5.24% and the S&P 500 has declined 6.58%.

Stocks ended the session with a surge on news that rating agency Standard & Poor’s reaffirmed the Triple A rating of bond insurers MBIA Inc. (NYSE: MBIA) and Ambac Financial Group, Inc. (NYSE: ABK).

The past couple of weeks had seen speculation that the companies will be downgraded, a move that will create problems for banks that have invested in bonds and probably lead to more losses due to writedowns on subprime mortgages.

Separately, several banks are planning a $3 bailout of Ambac Financial Group.

The two bond insurers had insured subprime-mortgage debt and are suffering the consequences of the ongoing stagnation in the U.S. housing sector.

Speaking of housing, the National Association of Realtors reported after the start of trading that sales fell 0.4% to an annualized rate of 4.89 million units, down from an upwardly revised 4.91 million units in December.

Investors actually took that as bullish news because economists were expecting to see a fall to an annual rate of 4.80 million units.