Sector movers: Industrial metal stocks gain after Putin comments

18th Mar 2014 14:42

Industrial metals and mining stocks, which have suffered heavy falls over the last month, experienced a brief respite on Tuesday as global financial markets reacted positively to comments from Vladimir Putin.Following Sunday's referendum, which saw Crimean locals vote overwhelmingly to join Russia, Putin and other officials signed a treaty to accept the accession, defying sanctions imposed by European Union (EU) and US leaders yesterday who labelled the vote as illegal. However, he said that Moscow has no plans to send its troops further into Ukraine, easing concerns that cross-border tensions could escalate."Equities are making a tentative move higher on news that Mr Putin, for now, does not intend to carve up any more of Ukraine, putting both ease and money back into risk assets," said Trader David White from Spreadex.Steel group EVRAZ and iron ore producer Ferrexpo have fallen sharply over recent weeks on the back of their exposure to Ukraine and Russia. The stocks recovered strongly today on Tuesday, rising 8.2% and 3.4%, respectively.Other miners such as African Copper, Zanaga Iron Ore and First Quantum Minerals were also performing well.Ahead of today, the industrial metals and mining sector had dropped by 28% over the past month on the back of rising geopolitical tensions in Ukraine, as well as concerns over a slowdown in top metals consumer China and falling commodity prices.Top performing sectors so far todayIndustrial Metals & Mining 861.21 +6.20%Automobiles & Parts 9,078.71 +1.70%Aerospace and Defence 4,807.36 +1.30%Tobacco 36,842.03 +1.12%Real Estate Investment Trusts 2,746.86 +1.11%Bottom performing sectors so far todayElectronic & Electrical Equipment 4,247.26 -0.95%Personal Goods 23,777.32 -0.39%General Retailers 2,951.35 -0.30%Fixed Line Telecommunications 4,548.91 -0.16%Real Estate Investment & Services 2,915.27 -0.16%BC