Laws of supply and demand fuel strong returns for mining

Continued demand from China, coupled with supply problems, has resulted in a strong result for mining stocks, a trend fund managers expect to continue. The mining sector has shown good returns in recent months. For example, the latest StockWatch UK report from Halifax Financial Services shows total shareholder returns in mining were up 10% in October, second only to industrial metals at 20%. UK mining company Vedanta Resources was the strongest performer on the FTSE 100 in October with total shareholder returns of 23%. Luke Newman, manager of the F&C Special Situations fund, says he h...