Sector movers: Meggitt, Cobham lift defence stocks

23rd Nov 2016 16:00

(ShareCast News) - Price gains for some key steel-making ingredients such as iron ore and thermal coal as well as in Chinese rebar futures kept pushing shares in Evraz and many of the main mining groups higher.Overnight, spot iron ore prices at Tianjin advanced from $69.0 a tonne to $71.5 a tonne, alongside a gain in steel rebar from $446.6 a tonne to $452.2.However, a spike in US Treasury yields lifted the US Dollar index, leaving a big dent in gold futures and punishing shares in precious metals miners such as Fresnillo, Randgold Resources and Polymetal.As of 1627 GMT gold futures for delivery in December were down by 1.93% to $1,187.90 on COMEX.Rotork was the standout gainer among Industrial Engineering stocks a day after the company said it expected full-year revenue to be towards the top end of expectations due to a currency tailwind and a good performance from acquisitions.Shares in the valve specialist were making a run at technical resistance near 229p and to break above its 200-day moving average in a convincing manner.Aerospace and Defence was also near the top of the leaderboard, with shares in Meggitt and Cobham pacing gains.Meggitt got a boost on Wednesday from speculation it may have received a bid approach.In parallel, Cobham got a leg up from Sandy Morris at Jefferies who nudged higher his target price on the manufacturer."We find that some significant drivers should work in Cobham's favour - defence spending, digitalisation (the "Cloud"), new air traffic management systems and more efficient shipping," Morris said in a research note sent to clients.Going the other way, supermarket Tesco was the main drag on its sector, with traders pointing to the fact they will be hit by the increase in the National Living Wage to £7.50 from £7.20 in April next year.Top performing sectors so far todayIndustrial Metals & Mining 2,669.00 +3.12%Industrial Engineering 9,941.34 +1.66%Aerospace and Defence 4,671.84 +1.30%Technology Hardware & Equipment 957.69 +1.19%Automobiles & Parts 7,290.09 +0.71%Bottom performing sectors so far todayFixed Line Telecommunications 4,109.89 -1.51%Construction & Materials 6,446.74 -1.42%Electronic & Electrical Equipment 4,830.21 -1.35%Food & Drug Retailers 3,089.37 -1.35%Household Goods & Home Construction 15,710.41 -1.23%