Sector movers: Chinese manufacturing PMI boosts mining stocks

1st Jul 2014 14:44

Upbeat manufacturing data from top metals user China gave UK mining stocks a big lift on Tuesday as investors turned bullish on the outlook for demand.The National Bureau of Statistics said that the official Chinese manufacturing purchasing managers' index (PMI) edged higher from 50.8 in May to 51.0 last month, as expected by analysts. This was its fourth straight monthly improvement and the highest reading since December 2013."Good news from China is always an ideal way to shake the FTSE 100 into life, thanks to the heavy mining component in the index," said Alastair McCaig, Market Analyst at IG."The tiny rise in the manufacturing PMI was hardly a major improvement, but it has been eagerly seized upon by traders evidently desperate for a positive news story."Rio Tinto was up 3% on reports about upside potential at its South of Embley bauxite project in Queensland. Citigroup also reiterated its 'buy' stance on the stock after a recent site visit to Rio's Alcan and Diavik assets.Precious metal producers Fresnillo and Randgold were also all putting in solid gains as gold prices fluctuated at a three-month high on the back of a weaker dollar.Meanwhile, Anglo American was extending gains after weekend media reports suggested that it has put some of its South African platinum mines up for sale as part of a plan to sell off $4bn of its underperforming assets.In other news, Central Rand Gold saw shares surge around 19% after saying that it has reclassified a gold mineralisation at its project in South Africa to 'mineral resource', having previously downgraded it to 'exploration target'.Top performing sectors so far todayMining 16,848.78 +2.14%Automobiles & Parts 8,608.76 +1.40%Beverages 14,551.86 +1.30%Fixed Line Telecommunications 4,470.02 +1.05%Banks 4,308.85 +0.99%Bottom performing sectors so far todayFood & Drug Retailers 3,622.12 -1.16%Industrial Transportation 2,960.87 -0.88%Food Producers & Processors 7,830.32 -0.26%Household Goods & Home Construction 11,607.84 -0.23%Media 6,086.76 -0.17%BC