- Brokers review sector preferences and conviction ideas
- Nickel price forecasts lowered, sector earnings impacted
- Project costs and risk mitigation key factors in energy sector
- Weakening IP numbers a threat to commodity prices

By Chris Shaw

With Australian profit reporting season over more and more brokers are conducting sector reviews, Credit Suisse among them in re-assessing gold stocks under its coverage.

The most common theme from reporting season according to Credit Suisse was an increase in cost pressures, primarily from labour and fuel. One surprise has been a lack of share price moves in the gold space despite the physical metal trading around US$1,900 per ounce.

Post reporting season Credit Suisse has gone through its preferred plays in each part of the Australian gold market, retaining Newcrest ((NCM)) as an Outperform pick on valuation grounds. This reflects continued underperformance relative to the gold price and other listed Australian gold stocks year-to-date.