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.

TASI	11,188	-0.5% (YTD: +6.6%)
MSCI Tadawul 30	1,492	-0.7% (YTD: +7.5%)
NomuC	22,882	0.0% (YTD: -1.8%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	4.25% repo	3.75% reverse repo
EGX30	51,761	-1.2% (YTD: +23.7%)
ADX	9,789	+0.1% (YTD: -2.1%)
DFM	5,767	0.0% (YTD: -4.6%)
S&P 500	7,230	+0.3% (YTD: +5.6%)
FTSE 100	10,364	-0.1% (YTD: +4.4%)
Euro Stoxx 50	5,882	+1.1% (YTD: +1.5%)
Brent crude	USD 108.17	-2.0%
Natural gas (Nymex)	USD 2.78	+0.5%
Gold	USD 4,645	+0.3%
BTC	USD 78,660	+0.7% (YTD: -10.2%)
Sukuk/bond market index	917.09	+0.1% (YTD: -0.2%)
S&P MENA Bond & Sukuk	151.40	+0.1 (YTD: -0.3%)
VIX (Volatility Index)	16.99	+0.6% (YTD: +13.7%)

THE CLOSING BELL: TADAWUL-

The TASI fell 0.5% Thursday on turnover of SAR 7.0 bn. The index is up 6.6% YTD.

In the green: GAS (+10.0%), Emaar EC (+6.4%), and Sisco Holding (+6.4%).

In the red: Almajed OUD (-10.0%), First Mills (-3.7%), and Bupa Arabia (-3.6%).

THE CLOSING BELL: NOMU-

The NomuC remained flat Thursday on turnover of SAR 19.8 mn. The index is down 1.8% YTD.

In the green: DRC (+11.5%), Mayar (+9.6%), and Saudi Top (+8.8%).

In the red: Molan (-12.6%), Lana (-8.8%), and Aictec (-6.7%).

CORPORATE ACTIONS-

Americana Restaurants’ board greenlit a USD 201.6 mn dividend payout for 2025 at USD 0.024 a share, it said in a disclosure to Tadawul (pdf). The payout date is yet to be announced.