Resources benefit from low supply, weak euro

Earnings and profits growth for resource companies have recovered in recent months after failing to meet investor expectations in 1999 and the first half of 2000, according to Neil Robson, head of European Equities at Baring Asset management. Resource companies posted an increase in total returns for the six months to the end of May 2001. For example, the Bloomberg Paper and Forest Index increased only 3% in sterling terms for the 12 months ending 31 May 2000 against a 25% rise in the overall Bloomberg 500 index. Over the 12 months to end of May 2001, the Paper and Forest index has risen ...