Sector movers: Investors dump Sage, weak rupee weighs on Vodafone

Cyclicals were clearly unwanted heading into the long Memorial Day weekend in the States with Software issues at the bottom of the pile, as investors recoiled at a warning from Sage.

Interestingly perhaps, software had been weak throughout the last few sessions.

Yet according to strategists at Bank of America-Merrill Lynch, globally technology stocks, alongside healthcare, had seen some of the strongest inflows over the preceding week, as they were perceived as potential winners from price deflation.

Sage confirmed analysts' worries that sales during the first half of the year had fallen short of expectations, forcing the company to lower its guidance for the rate of growth in full-year organic revenues by one percentage point to about 7.0%.

The reaction in markets was immediate, with the share price trading 20% lower at one point during the morning.

As an aside, and ahead of the return of most traders from their summer holidays on Monday and Tuesday (in the US), BofA-ML noted that market positioning was turning less favourable for risk assets.

Oil equipment and service stocks were lower alongside Software, amid profit-taking in shares of Hunting in the wake of the sharp gains that ensued following its latest set of interims, which were released the day before.

Vodafone meanwhile was the main drag in the Mobile Telecommunications space after announcing it had completed the tie-up of its Indian subsidiary with local rival Idea cellular.

To take note of perhaps, in the background the Indian currency, the rupee, was trading at a record low versus the US dollar.

Top performing sectors so far today

Real Estate Investment & Services 2,682.93 +0.80%

Travel & Leisure 10,064.30 +0.74%

Gas, Water & Multiutilities 4,898.65 +0.63%

Electricity 7,614.41 +0.47%

Fixed Line Telecommunications 2,539.44 +0.40%

Bottom performing sectors so far today

Software & Computer Services 1,826.28 -3.49%

Oil Equipment, Services & Distribution 15,225.37 -2.07%

Industrial Metals & Mining 4,453.45 -1.94%

Chemicals 16,417.48 -1.51%

Mobile Telecommunications 3,705.29 -1.47%