Sector movers: Industrial Engineers up despite tough end markets

1st Dec 2016 17:19

(ShareCast News) - Another day of solid gains for crude oil futures boosted the oil patch again.Close behind were Industrial Engineers, with shares in Rotork, IMI and Weir Group pacing gains.Commenting on the messages delivered by the three companies at the latest biannual Valveworld trade show in Dusseldorf, analysts at UBS said the overarching theme was their focus on product innovation amid softer demand from end markets.On Rotork, UBS's Mark Fielding said that: "the Instruments division was a standout performer in Q3 and its stand at the show highlighted the growing strength of positioning of this business with a more integrated strategy being visible versus the same show 2 years ago."As for 'Sell'-rated IMI, the Swiss investment bank said the meeting emphasised the "operational progress" made, but its Oil & Gas markets remain "challenged" with pricing on large projects under pressure.The end market backdrop in Flow, at Weir, was still "tough", UBS said. On a more positive note, Fielding said "the view from the floor also suggests that the CEO change appears to have also been a smooth transition within the group so far."Strength in the pound on the back of speculation about a possible 'soft' Brexit weighed on the likes of Diageo and Unilever.Britvic was the main loser in the Beverages sector after HSBC warned that the soft drinks industry was "likely to remain challenging" with the UK facing input cost inflation and the uncertainty around the sugar tax.Upward pressure on UK Gilt yields weighed on 'defensives' such as Tobacco and Health Care Equipment and Services.As of 1703 GMT the yield on the benchmark 10-year Gilt was up by eight basis points and at an area of so-called 'technical resistance' at around 1.50%.Steel-makers and some of the top base metals names gained ground as prices for the underlying commodities they flog rose in overnight trading in Shanghai.Top performing sectors so far todayOil & Gas Producers 7,859.01 +2.51%Oil Equipment, Services & Distribution 15,388.99 +2.34%Industrial Engineering 10,132.46 +2.24%Industrial Metals & Mining 2,396.19 +1.46%Mining 14,649.93 +0.77%Bottom performing sectors so far todayForestry & Paper 17,040.29 -3.12%Personal Goods 27,470.86 -3.12%Tobacco 49,251.38 -2.45%Beverages 15,552.48 -2.39%Health Care Equipment & Services 6,695.71 -2.27%