Sector movers: Chinese data dents mining stocks

11th May 2012 16:24

Mining stocks tanked on Friday afternoon as data from the world's second-largest economy dampened sentiment early on.Industrial production figures in China disappointed today as investment growth eased to a near 10-year low in April. Output increased by 9.3% year-on-year last month, down from the 11.9% rise in March and well below the 12.2% gain expected. This was the lowest growth rate since May 2009. Fixed asset investment growth slowed from 20.9% to 20.2% in April, its slowest level since late 2002.Chinese consumer price inflation slowed from 3.6% to 3.4% in April, under the government's 4% target again, fuelling speculation for further monetary easing. "China's economy is even weaker than thought, with industrial production growth back in single digits for the first time since the global financial crisis and electricity production flat-lining...In combination with a moderate inflation print this morning, there appears [to be] a strong case for accelerated easing...A more assertive monetary policy is now needed," said economists at IHG Global Insight.With concerns about a slowing Chinese economy weighing on the demand outlook for commodities, blue chip miners were sold off in London. Vedanta, Evraz, Xstrata, Glencore, Kazkahmys, Rio Tinto and ENRC were firmly out of favour, with the latter being weighed down by a target price cut from UBS after the miner's first-quarter production figures missed estimates. Kazakhmys announced this afternoon that its Chairman and major shareholder, Vladmir Kim, would hand over his duties to a new independent Chairman so that the company could meet regulations on corporate governance.Top performing sectors so far todayReal Estate Investment Trusts 1,973.20 +2.34%Automobiles & Parts 4,505.45 +2.17%General Retailers 1,726.38 +1.80%Gas, Water & Multiutilities 5,120.10 +1.76%Personal Goods 22,490.38 +1.67%Bottom performing sectors so far todayIndustrial Metals & Mining 3,459.79 -2.70%Mining 18,787.26 -1.21%Health Care Equipment & Services 3,413.48 -1.01%Banks 3,674.01 -0.97%Oil Equipment, Services & Distribution 25,131.92 -0.44%BC