Sector movers: Rotork and Weir lead gains, utilities hit by rising yields

The industrial engineering was on the up on Monday as bullish quarterly results from Rotork followed other positive numbers from the sector to lift sentiment.

Flow control manufacturer Rotork surged as it reported a jump in first-quarter revenue and said it now expects full-year revenue to show mid to high single-digit growth over the previous year.

Analysts at RBC Capital Markets said first-quarter orders and revenues suggest that the long-awaited recovery in Rotork’s oil & gas end markets is coming through. "Rotork would perhaps be one of our favoured ways to play a recovery in late cycle oil & gas markets. However, our enthusiasm is tempered by the valuation (26x 2018 earnings) and the unknowns from the group’s strategic plan."

Sector-mate Weir was also on the front foot as RBC upped its price target and reiterated its 'outperform' rating.

Elsewhere in the sector, the likes of IMI and Hill & Smith were carried along on the good mood.

At the other end, with bond yields rising across the board as higher interest rate expectations help to push UK and German 10 year yields up to one month highs, this hit bond proxy shares such as United Utilities and National Grid, pushing the utilities sector lower.

Top performing sectors so far today

Industrial Engineering +2.79%
Mobile Telecommunications +1.79%
Oil Equipment, Services & Distribution +1.41%
Life Insurance +1.22%
Tobacco +1.10%

Bottom performing sectors so far today

Automobiles & Parts -1.47%
Gas, Water & Multiutilities -1.45%
Real Estate Investment & Services -0.82%
Household Goods & Home Construction -0.74%
Beverages -0.50%