Sector movers: Chemring lifts defence stocks

27th Nov 2012 14:00

A well-received trading update from Chemring pushed the aerospace and defence sector higher on Tuesday afternoon.Following a profit warning earlier this month, British defence-equipment maker Chemring said that trading remained in line with expectations at the end of the financial year (ended October 31st), but admitted that its full-year performance was "extremely disappointing".Amidst a challenging market backdrop, the company told investors that it needs to "adapt and better equip itself".Richard Curr, the head of dealing at Prime Markets, said in an e-mail: "There is no doubt that Chemring has endured a tough year, with uncertainties and failures in several businesses within the group. "However, Prime Markets believes that these failures and uncertainties are fully reflected in the share price, which at year lows around 240p is a long way off the year high of over 450p."Curr said that a "turning point" has been reached today. "If the shares hold on to the 20-day moving average level for this week, we believe the fundamentals are now in place to support a recovery and return to October levels around 300p."Elsewhere in the sector, defence technology firm Cobham was up following yesterday's news that it had appointed a new Chief Financial Officer, Simon Nicholls, the current CFO of fellow FTSE 250 constituent Senior.Top performing sectors so far todayTechnology Hardware & Equipment 928.20 +1.50%Aerospace and Defence 3,835.05 +0.91%Tobacco 37,479.56 +0.83%Food & Drug Retailers 3,986.12 +0.79%Banks 4,248.72 +0.66%Bottom performing sectors so far todayConstruction & Materials 3,100.14 -0.65%Forestry & Paper 6,888.28 -0.47%Fixed Line Telecommunications 2,656.08 -0.46%Mobile Telecommunications 3,672.94 -0.25%Chemicals 8,652.19 -0.23%BC