Sector movers: GKN dampens auto stocks on demand worries
Tue 16 Oct 2012
LONDON (SHARECAST) - The automobiles and parts sector was the worst performing category on Tuesday afternoon with engineering group GKN providing a drag.
GKN warned that macroeconomic conditions have deteriorated in recent weeks and it was seeing evidence of softening in order books. This was particularly evident in European automotive and industrial markets, it said.
Investec cut its price target for the stock from 240p to 224p today and retained its 'hold' rating after third-quarter revenues came in below expectations.
Sales came in at £1,608m compared with Investec's £1,637m estimate, while the 7.1% missed the 8.2% forecast, after its Driveline division suffered from a worse-than-expected weakening in automotive demand and associated operational issues.
Meanwhile, technology hardware and equipment stocks were on the rise with chip designers ARM Holdings and Imagination Tech making gains.
ARM Holdings was nearly 3% higher despite both Societe Generale and Liberum Capital retaining their 'sell' ratings on the shares.
Imagination Technologies was up 8% after both Liberum Capital and Numis upgraded their recommendations on the stock.
Top performing sectors so far today
Industrial Metals & Mining 2,580.88 +4.00%
Technology Hardware & Equipment 783.21 +2.67%
Personal Goods 18,328.15 +2.25%
Banks 4,182.05 +2.16%
Life Insurance 4,835.95 +2.16%
Bottom performing sectors so far today
Automobiles & Parts 4,760.30 -3.92%
Food & Drug Retailers 3,914.49 -0.65%
Mobile Telecommunications 4,026.13 -0.23%