Will the mining sector and M&A led rally in UK equities last? - Panmure Gordon

David Buik, Senior Market Commentator at Panmure Gordon presents his take on current market activity with special emphasis on the mining sector rally from Feb lows, which is now being called as the ‘big mining turnaround’, and on the M&A activity in the UK. He is joined by Tip TV’s Zak Mir, and Alan Green, CEO at Monk Communications.

Mir states the stock market rally is backed by M&A boom and not blown just by hot air. However, Buik expresses concern on that by stating, “We do not have the increase in profitability or sustainability of dividend”.

Buik also points to the risk from the black hole of pension deficits. In that sense all isn’t hunky dory even though there are good news on M&A front and stock market activity.

Buik's take on mining sector

“I find the mining sector completely staggering, major miners are now up in multiples of 100 in percentage terms”

“It’s a brave rally given the tepid demand from China and across the globe”

“Oil rally endorsed jump in miners”

“Sentiment bullish on miners... experts calling for continuation of rally for the next few years, which means the economy would be doing well. However, I am less than convinced!”

“BHP and Glencore – wouldn’t describe results as outstanding”