Sector movers: Drax powers electricity sector

2nd Jun 2011 16:19

Drax is providing a spark in the electricity sector after a kind word from financial services firm Matrix.The broker upped its target price for coal-fired power station operator Drax from 460p to 550p, saying that now is the time to focus on its biomass potential with UK policy becoming clearer in the next few months. A 'buy' rating is kept. Rolling on in the background is sentiment-boosting news from Germany. The German government have announced this week that it will close all 17 nuclear plants in the country by 2022, aiming to replace around 20% of its total electricity consumption with emissions-free sources of energy. The move is expected to benefit renewable energy stocks such as Drax and Scottish & Southern Energy, which is also rising higher today.Meanwhile, Johnson Matthey is pulling down the chemicals sector.Full-year profits from speciality chemicals group Johnson Matthey came in ahead of market expectations with good performances in all parts of the business. However, investors seemed underwhelmed as the stock sunk on the blue chip index on Thursday. ---BCTop performing sectors so far todayElectricity 8,594.01 +0.92%Insurance (non-life) 1,674.47 +0.36%Real Estate Investment & Services 1,713.86 +0.19%Support Services 4,663.06 +0.15%Media 4,229.73 +0.14%Bottom performing sectors so far todayAutomobiles & Parts 4,991.77 -2.51%Chemicals 7,552.19 -1.88%Mining 25,188.22 -1.71%Oil & Gas Producers 8,262.09 -1.35%Pharmaceuticals & Biotechnology 9,405.00 -1.32%