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Citi Cuts Rating on Miners

BHP, Anglo American and Rio Tinto are all downgraded.

Citigroup Global Markets hit the base metals sector with downgrades Monday on the belief that share prices in the group are nearing their peak.

Miners

BHP

(BHP) - Get Report

,

Anglo American

(AAUK)

and

Rio Tinto

(RTP) - Get Report

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were all reduced to hold ratings from buy.

"The sector is now sitting at, or very close to, all-time highs," states the report authored by Heath Jansen and his team at Citi in London. "The miners are now trading

at about a 35% premium to net present values, which has historically been the right point to trim positions."

Shares of the three firms were all sliding between 2.5% and 3% in recent action in New York.

The report recommended sticking with

Norsk Hydro

(NHY)

and

Xstrata

, both of which are trading at a "discount to their peers."

Still, Norsk was losing 3% in U.S. trading, while Xstrata was off 3% in London.