Sector movers: Burberry lifts personal goods sector on Chinese growth hopes

28th Nov 2012 15:48

A decent showing by luxury brand Burberry on Wednesday afternoon ensured that the personal goods sector was performing well, with optimism about the Chinese economy providing a boost to sentiment.According to Chinese Commerce Minister Chen Deming, the world's second-largest economy will definitely hit its growth target of at least 7.5% this year. Speaking at the Caijing annual conference in Beijing, Chen said: "In the first three quarters, China's economy has grown 7.7% from a year ago, therefore, it is for certain that we can achieve the annual [gross domestic product] target of 7.5% or above."These comments were echoed by Chen Dongqi, deputy director of the institute of macroeconomic research under the National Development and Reform Commission, who said that the economic outlook for next year will be even better.Shares in Burberry were gaining 2.9% to 1,276p this afternoon.The company is heavily exposed to the Chinese market - one of its highest growth regions - and its share price often sensitive to swings in the economic outlook for the nation; concerns about a 'hard landing' in China have kept the stock under pressure in the year to date (up just 7.51%). In its first-half results earlier this month, the company said that comparable store sales growth in China, while still positive, slowed down in the second quarter "driven primarily by lower traffic".Nevertheless, Burberry said it continued to investment in mainland China during the period, opening seven stores (and closing two) to bring the total to 68 outlets in 35 cities.Mainland China, which accounted for 40% of Asia Pacific's retail sales, delivered mid-teens percentage underlying revenue growth in the first six months of the year.Top performing sectors so far todayPersonal Goods 19,938.64 +1.77%Industrial Transportation 2,344.77 +0.91%General Retailers 1,958.77 +0.88%Technology Hardware & Equipment 940.22 +0.76%Mobile Telecommunications 3,678.90 +0.35%Bottom performing sectors so far todayIndustrial Metals & Mining 2,387.78 -4.09%Mining 17,680.36 -1.49%Health Care Equipment & Services 3,687.18 -1.01%Oil Equipment, Services & Distribution 23,923.52 -0.90%Gas, Water & Multiutilities 5,165.28 -0.76%BC