Sector movers: GKN drives auto stocks higher

15th Sep 2011 15:17

With the European Central Bank announcing that it is to provide Eurozone banks with US dollars until the end of the year, markets were soaring on Thursday afternoon, with the FTSE 100 being no exception, gaining over 2.5% as of 15:30. As such, no sectors were in the red, as investors celebrated the move.The automobiles and part sector was at the top of the pile, led by blue chip automotive and aerospace engineer GKN, which roared over 7% ahead, as the Frankfurt auto show motored on.Evolution Securities published a note today, saying that the stock is cheap and provides a "real opportunity". "Our assessment of the mood out of this week's Frankfurt auto show is one of resilience with growth in global auto production still a sensible planning assumption," said analyst Harry Philips. The broker highlights US automotive manufacturer Lear's presentation on Tuesday that it expects a compound annual growth rate of 9% in BRIC (Brazil, Russia, India and China) production to 2016, 3% in Europe and 5% for North America. "If this becomes a reality then global component suppliers with commanding market shares are going to do well and in this context." The personal goods is also higher, helped by a strong rise from iconic British luxury brand Burberry.Shares were over 6% higher on the FTSE 100 on speculation that it could see a reduction in luxury goods taxes in a key market - China. Chinese newspaper National Business Daily has refuelled the debate, reporting that import duties on luxury items may be cut by the end of the year. However, government ministers still remain divided over whether to adjust their stance, the newspaper said. While the Ministry of Finance has been reported to have confirmed that it does not want to scale back the tax, Yao Jian, a spokesman from the Ministry of Commerce, said in June that China will cut tariffs in an effort to stimulate consumption. BCTop performing sectors so far todayAutomobiles & Parts 4,575.59 +6.59%Personal Goods 23,170.92 +5.82%Construction & Materials 3,087.49 +4.57%Industrial Metals & Mining 5,717.97 +4.57%Chemicals 6,532.86 +4.47%Bottom performing sectors so far today