Sector movers: EVRAZ and Ferrexpo lift industrial metals sector

22nd Nov 2012 16:01

Industrial metals and mining stocks were the best performers on Thursday afternoon after hopes for demand increased following the upbeat economic data from China.The 'flash' HSBC Chinese purchasing managers' index (PMI) for the month of October came in at 50.4, up from 49.5 for the previous month. That constitutes a thirteen month high. Financial sales trader Matthew Nelson from Spreadex said this morning: "News that manufacturing output had risen in China for the first time in more than a year helped to underpin sentiment in the East and the figures have also aided the prospects of UK metals and energy companies with the bulk of this morning's shift coming from the two sectors." Steel giant EVRAZ was the high riser of the category after announcing that it is to sell its Russian railcar operating subsidiary EvrazTrans to Russian freight rail operator NefteTransService for around $300m as it divests of non-core assets.EVRAZ's Chief Executive Officer Alexander Frolov said: "The divestment of EvrazTrans will unlock the value of the asset for EVRAZ while the long-term off-take service agreement will guarantee continuity of services for transporting EVRAZ's products."Meanwhile, iron ore producer Ferrexpo was also making decent gains following an analyst dinner yesterday. According to Financial Times Alphaville, analysts at Numis said that the meeting "affirmed our view further of this conservative business that continues to drive itself up the product quality chain and down the cost curve." The broker noted that the stock is trading at a "subdued" 3.2 times earnings and 0.8 times net asset value, "below its peers".Top performing sectors so far todayIndustrial Metals & Mining 2,487.60 +3.21%Beverages 13,355.65 +2.74%Chemicals 8,597.04 +1.97%Forestry & Paper 6,904.44 +1.34%Software & Computer Services 879.92 +1.28%Bottom performing sectors so far todayMobile Telecommunications 3,696.27 -0.55%BC