Sector movers: Hopes over Chinese growth drive mining stocks higher

23rd Jul 2013 15:00

Stocks in the mining sectors were shrugging off falls in metals prices on Tuesday with share prices surging as markets focused on upbeat comments from government officials in China, a huge importer of raw materials.Chinese Premier Li Keqiang is reported to have stood by the government target for economic growth of 7.5% in 2013 and assured that the pace of expansion would not fall below the "bottom line" of 7.0%. Meanwhile, Vice Premier Zhang Gaoli has said that the ruling party would continue to support infrastructure and social welfare investments."This suggests that the ruling party is preparing to announce a new package of stimulus measures which should prevent a hard landing in China in the coming years," said Market Analyst Craig Erlam from Alpari. "While additional stimulus measures may not be ideal for China's long-term health, it's clearly seen as a positive thing now," Erlam said.Glencore Xstrata, Vedanta, Rio Tinto, Fresnillo, ENRC, Anglo American, BHP Billiton and Antofagasta were among the best performers on the FTSE 100 in afternoon trade, with gains ranging from 2-5%.Second-tier peers Hochschild Mining, African Barrick Gold, Kazakhmys, EVRAZ and Ferrexpo were also higher.Markets also welcomed a trading update from gold miner Petropavlovsk which said that gold production increased by 6.0% in the first half to 294,700 ounces. The stock was up 5.2% at 101p by 15:17 after the firm reiterated its full-year production guidance for 760,000-780,000 ounces, assuring that second-half output is always greater than the first half due to weather conditions.Top performing sectors so far todayIndustrial Metals & Mining 1,330.65 +4.13%Mining 16,061.12 +2.80%Software & Computer Services 1,185.31 +1.28%Oil Equipment, Services & Distribution 23,916.26 +0.96%Industrial Transportation 2,936.18 +0.95%Bottom performing sectors so far todayInsurance (non-life) 1,820.04 -1.10%Industrial Engineering 9,610.30 -0.56%Pharmaceuticals & Biotechnology 11,324.50 -0.52%Household Goods & Home Construction 10,745.20 -0.48%Travel & Leisure 6,668.93 -0.40%BC