Sector movers: Chinese trade data gives miners a boost

8th Aug 2013 15:19

Better-than-expected trade figures from China boosted stocks in London's mining sector on Thursday, as equities recovered after some sharp falls in recent days.Disappointing results from heavyweight precious metal groups Randgold and Fresnillo have weighed on the sector this week, with investors also discouraged by falling commodity prices. The FTSE 350 mining sector had lost nearly 5.0% of its value since last Friday (ahead of today).Helping stocks and metals prices higher today was the General Administration of Customs which said that Chinese exports jumped by an annual rate of 5.1% in July, better than the 2.0% rise expected, while imports surged 10.9% (forecast: +1.0%)."[The data] has helped spawn a recovery in mining stocks ahead of Chinese July industrial production data tomorrow morning," said Senior Market Analyst Michael Hewson from CMC Markets. "This improvement in imports, if it is to be believed, should translate into a good number here also."Commodity prices jumped across the board today with gold, silver, platinum and copper gaining. Copper hit its highest value is nearly two months today with futures for three-month delivery on the London Metal Exchange up as much as 2.3% at $7,170 a tonne earlier on, the highest price since June 17th.FTSE 100 mining peers Anglo American, Antofagasta, Glencore Xstrata and BHP Billiton were all higher in afternoon trade. Even Vedanta edged higher as it shrugged off a downgrade from Liberum Capital to 'hold'. Rio Tinto also gained despite recording an 18% drop in underlying earnings in the first half due to lower market prices and a higher tax rate, partly offset by record iron ore shipments and cost savings. Avocet Mining was also a high riser in the sector today with shares jumped as much as 24% after the group said the new Inata life of mine plan showed a 36% increase in total gold production.The Inata gold mine, in Burkina Faso, has undergone a phase of further drilling and evaluation of additional areas within the licence and metallurgical testwork on the ore. Chief Executive Officer David Cather said the new plan "increases operational efficiency and will deliver significantly higher value than we had previously indicated." Top performing sectors so far todayForestry & Paper 11,019.10 +3.81%Mining 15,984.41 +2.69%Electronic & Electrical Equipment 4,110.18 +1.70%Technology Hardware & Equipment 1,053.03 +1.68%Automobiles & Parts 8,215.96 +1.44%Bottom performing sectors so far todayAerospace and Defence 5,238.56 -0.84%Mobile Telecommunications 4,612.80 -0.01%BC