Sector movers: Mining stocks in demand despite worsening outlook for China
Mining stocks were resilient in the face of some gloomy trade figures from top metals consumer China on Monday, as hopes increased for further stimulus measures by Beijing to avert a sharp slowdown in economic growth.
Anglo American
2,693.50p
16:54 03/05/24
Centamin (DI)
120.80p
16:49 03/05/24
Fresnillo
549.50p
16:40 03/05/24
FTSE 100
8,213.49
16:59 03/05/24
FTSE 250
20,164.54
17:00 03/05/24
FTSE 350
4,515.50
16:54 03/05/24
FTSE All-Share
4,469.09
17:14 03/05/24
Glencore
455.00p
16:50 03/05/24
KAZ Minerals
849.00p
16:40 10/05/21
Mining
10,084.30
16:54 03/05/24
Polymetal International
215.00p
16:35 31/07/23
Randgold Resources Ltd.
6,546.00p
17:00 28/12/18
Rio Tinto
5,467.00p
16:49 03/05/24
The Chinese trade surplus unexpectedly ballooned to a record $60bn in January from $49.6bn the month before, as imports sank by an annual rate of 19.9% compared with a 2.4% decline in December.
Exports were also weak, falling by 3.3%, reversing after a 9.7% jump the previous month.
Miners were “holding up surprisingly well” despite the weak data, according to Mike van Dulken from Accendo Markets.
“While the news would normally see the natural resources focused names on the FTSE suffer, however, their relative buoyancy likely comes from expectations of more stimulus being forthcoming from Beijing (government or People’s Bank of China) in order to keep [economic] growth in the world’s #2 economy at a level markets are comfortable with,” he said.
The PBoC last week lowered banks’ reserve requirement ratio by 50 basis points to 19.5%, the first such cut since May 2012, in an effort to boost lending.
FTSE 100 producers such as Fresnillo, Glencore, Randgold Resources and Rio Tinto were all trading firmly in positive territory in afternoon trade. Randgold was in demand despite reporting a 17% drop in annual profits for last year, though it appease investors with a 20% hike its dividend payment .
Stocks on the FTSE 250, including Polymetal, Centamin and Kaz Minerals, were also higher.
Even Anglo American was rising despite revealing that its contribution to underlying profits from its platinum division in South Africa plummeted 92% in 2014 as a result of a five-month strike and lower metal prices.
However, economic Julian Evans-Pritchard from Capital Economics said not to read too much into the data " as trade growth, particularly imports, is highly volatile at the start of the year due to shifts in the timing of Chinese New Year".
Top performing sectors so far today
Oil Equipment, Services & Distribution 17,041.86 +1.48%
Mining 14,370.66 +1.29%
Oil & Gas Producers 7,491.86 +0.90%
Construction & Materials 4,618.48 +0.85%
Industrial Transportation 2,866.49 +0.24%
Bottom performing sectors so far today
Electronic & Electrical Equipment 3,909.67 -2.68%
Real Estate Investment Trusts 3,300.90 -2.19%
General Industrials 4,101.91 -2.18%
Automobiles & Parts 8,697.60 -2.03%
Gas, Water & Multiutilities 6,102.86 -2.02%