HK Stock Market Move | CMOC Group Limited (03993) rose over 3% in the morning session as tightening conditions in the domestic physical market drove copper prices higher. Citigroup is optimistic about the company's business fundamentals.

CMOC Group Limited (03993) rose over 3% before noon. As of the time of writing, it is up 3.09%, trading at HK$19.04, with a transaction volume of HK$1.072 billion. Citigroup published a research report stating that it has included CMOC Group Limited in its 30-day upward catalyst watch. Citigroup is optimistic about the company's fundamentals, mainly due to the TFM and KFM expansion projects, which will increase copper and cobalt production, along with the long-term positive outlook for copper prices driven by renewable energy demand. The bank noted that the catalyst for rising copper prices mainly stems from signs of tightening in China's physical market, predicting that copper prices will reach US$14,500 per ton in three months and US$15,000 per ton by year-end. It estimates that for every 10% increase in copper prices, CMOC Group Limited's net profit in 2026 will increase by 10%. Additionally, Citigroup believes that, given the recent pullback in stock prices while commodity prices continue to rise, concerns among investors about interest rate hikes have already been reflected in the share price. Citigroup's U.S. Economic Research Team anticipates that with the rise in the U.S. unemployment rate, there will be interest rate cuts in October, December, and January.