Sector movers: Miners rise on improving data from China

22nd Aug 2013 14:51

Cyclical sectors were in demand on Thursday as better-than-expected data brightened the outlook for the global economy. Mining stocks were among the best performers after it was revealed that manufacturing activity in Asian powerhouse China unexpectedly returned to growth in August.The HSBC/Markit flash purchasing managers' index (PMI) for the Chinese manufacturing sector improved from 47.7 to 50.1 in August, well ahead of the 48.2 consensus forecast - the 50-point mark separates expansion from contraction."This brings the HSBC survey more into line with the official data, which suggests the targeted stimulus measures being implemented by the government are not just benefiting the larger state owned firms, but the small and medium sized private ones as well. This is necessary if we're going to see a sustainable recovery," said Market Analyst Craig Erlam from Alpari. Rising metals prices were also lifting stocks with gold, silver, platinum and copper all advancing today. Glencore Xstrata was performing well as the miner continues to recover after disappointing the market with its first-half report earlier this week. JPMorgan cut its target price but maintained its 'overweight' position on the stock today, highlighting the group's "best-in-class free cash flow".Precious metals producer Hochschild Mining was the high riser on the FTSE 250, rebounding strongly after disappointing the market on Wednesday by suspending its interim dividend as falling metals prices hit revenues and profits. Westhouse Securities, JPMorgan Cazenove and RBC Capital Markets all upgraded their target prices for the stock today with the latter citing the company's cost savings programme which should have a positive impact going into the second half.Kazakhmys was up after reassuring investors that output of all metals was in line with full-year targets during the first half despite lower commodity prices and impairment charges - owing to the decision to dispose of its ENRC stake - hitting results.AIM-listed London Mining surged by nearly 16% in afternoon trade after swinging to underlying earnings of $24m in the first half, compared with a loss of $0.2m the year before, as production volumes jumped 129% year-on-year.Vedanta, Fresnillo, EVRAZ and Ferrexpo were also higher today.Top performing sectors so far todayIndustrial Metals & Mining 1,487.26 +5.12%Automobiles & Parts 8,056.97 +2.32%Industrial Transportation 3,077.62 +2.13%Mining 16,705.88 +2.05%Industrial Engineering 10,067.25 +1.87%Bottom performing sectors so far todayPersonal Goods 25,295.24 -0.27%Gas, Water & Multiutilities 5,697.33 -0.02%BC