Sector movers: Miners fall on concerns over China, Caterpillar

23rd Oct 2013 15:40

Mining stocks were out of favour on Wednesday after results from US equipment manufacturer Caterpillar disappointed and concerns over the Chinese economy weighed on sentiment.Gold, silver and copper prices were declining today amid increasing money-market rates in China after the central bank refrained from adding liquidity to markets. Prices were also lower on reports that debt write-offs at China's biggest lenders tripled in the first half, raising fears over the outlook for commodities demand from the world's top metals user. Antofagasta, Anglo American, Kazakhmys, Bumi, Polymetal, Hochschild Mining and Rio Tinto were all registering losses in afternoon trade.BHP Billiton was trading in the red following a strong rise on Tuesday after it raised its forecast for annual iron ore production whilst maintaining guidance for oil, copper and coal output.Firestone Diamonds was down despite reporting a rise in potential diamond values from its Liqhobong diamond mine in Lesotho.Kenmare Resources was bucking the trend to rise on the news that a fire at its only operating mine, Moma mine in Mozambique, will have a "limited" impact on production until late November.Wider market sentiment was also dampened today by gloomy results from US bellwether Caterpillar, which makes heavy machinery for the mining and ground-moving industries. The firm reported a substantial drop in third-quarter profits from $2.54 to $1.45 a share owing to weak mining orders. "Not only is mining down from 2012, the demand for equipment has been difficult to forecast. Orders for new mining equipment began to drop significantly in mid-2012 and have continued at very low levels," said Chairman and Chief Executive Doug Oberhelman. The company also disappointed Wall Street forecasts with its guidance for the full year, saying that "significant risks and uncertainties" could temper global economic growth next year. Oberhelman warned: "Eurozone economies are far from healthy and China continues to transition to a more consumer-demand led economy. In addition, despite higher mine production around the world, new orders for mining equipment remain very low."Top performing sectors so far todayIndustrial Transportation 3,304.50 +1.64%Health Care Equipment & Services 4,514.38 +0.94%Insurance (non-life) 1,830.57 +0.92%Life Insurance 6,763.27 +0.69%Food Producers & Processors 7,036.72 +0.59%Bottom performing sectors so far todayIndustrial Metals & Mining 1,549.23 -3.52%Technology Hardware & Equipment 1,139.00 -2.75%Mining 17,000.50 -1.79%Banks 4,923.53 -1.44%Construction & Materials 4,262.33 -1.25%BC