Investors are piling into mining and metals

Growth in sectors like AI and defense is triggering a spending spree in a key sector that is powering the others — mining. The rush is part of a wider pivot away from tech stocks and toward hard assets, as infrastructure continues to cement its place as a key hinge on which other growing sectors, from AI to energy, depend.

By the numbers: Assets under management in mining exchange-traded funds doubled to USD 87.4 bn at the end of 1Q, according to ETFGI data picked up by Reuters. Investors poured USD 8.2 bn into mining during the quarter — a USD 10.8 bn reversal of outflows that had hit the sector in 1Q 2025, triggered by tariffs implemented by US President Donald Trump. Meanwhile, shares of the two largest mining companies, BHP and Rio Tinto, have both hit record highs this year.

Why are they having such a moment? In comparison with tech stocks, critical minerals and metals are seen as less exposed to AI disruption, Harding Loevner’s Anix Vyas said. For now, “copper is at the intersection of everything and critically undersupplied,” Regal Partners’ Charlie Aitken said, while also predicting the metal’s prices could double or triple in the next decade.

The regional war has also put things into perspective, highlighting the need for governments to shore up supply chains and secure disruption-proof access to critical materials and energy security.

A rethink of the traditional “safe haven”? Inflows into copper outperformed those into gold, as investors increasingly position themselves towards infrastructure-linked assets amid war-induced disruptions, effectively betting on more infrastructure spending across the energy sector. Oil and gas funds saw some USD 6 bn in inflows in the first quarter alone.

Where the risks lie: Metals, as an asset class, are more exposed to supply chain disruption, as we’re currently seeing through the Strait of Hormuz. Typically, fund sizes are smaller, meaning volatility can seem more amplified.

THE CLOSING BELL-

The EGX30 fell 1.2% at Thursday’s close on turnover of EGP 11.0 bn (52.2% above the 90-day average). Local investors were the sole net buyers. The index is up 23.7% YTD.

In the green: Valmore Holding -EGP (+3.7%), AMOC (+3.5%), and Palm Hills Developments (+1.8%).

In the red: Raya Holding (-4.2%), Fawry (-3.7%), and Emaar Misr (-2.6%).