Sector movers: Food producers lifted by AB Foods note
The food producers & processors sector sector was top of the leaderboard on Monday, though they were balanced by an 11% fall for industrial metals & mining due as Russian sanctions dragged on several sector names.
Evraz was the biggest faller in the metals space as the Russian steel producer was among those hit by US sanctions against Russian businesses.
Moscow and Hong-Kong listed aluminium producer Rusal was smashed, losing 50% of its value during the day, hurting commodities trader Glencore, the largest shareholder in Rusal and the biggest buyer of Russian aluminium. London-listed conglomerate EN+, like Rusal owned by oligarch Oleg Deripaska, was a big faller.
The food sector was lifted by AB Foods enjoying a positive write-up by Credit Suisse. The Primark owner’s first-half results should reassure, analysts at the Swiss bank said, though they cut their price target on the outperform-rated stock to 3,300p from 3,700p given weak peer multiples at Primark's apparel peers.
CS said the results should show solid progress in Ingredients driven by Twinings/Ovaltine, while Grocery should be helped by reduced losses in bread and the Acetum acquisition. As far as Primark is concerned, it expects £346m in EBIT, with 9.9% margins.
Top performing sectors so far today
Food Producers & Processors +1.87%
Leisure Goods +1.77%
Media +0.74%
Software & Computer Services +0.71%
Gas, Water & Multiutilities +0.67%
Bottom performing sectors so far today
Industrial Metals & Mining -11.50%
Oil Equipment, Services & Distribution -1.54%
Mining -1.43%
Industrial Engineering -0.81%
Personal Goods -0.77%