Sector movers: Mondi growth boosts forestry stocks

21st Feb 2011 18:00

The forestry and paper sector flourished today as sector heavyweight Mondi posted a big rise in profits.The South African paper and packaging firm increased full year pre-tax four fold and upped its dividend as demand continues to pickup from financial crisis levels.Pre-tax profit rose to €372m for the year ended 31 December 2010 from €49m a year earlier. Group revenue increased 18% to €6.2bn."Demand growth over the past 18 months has been very encouraging, with volumes in most grades and geographic regions back at satisfactory levels," said Mondi chief executive David Hathorn in a company statement.CSR dragged the technology hardware & equipment sector lower.The bluetooth chip specialist CSR unveiled a $680m merger with US peer Zoran accompanied by a $240m share buyback programme.Joep van Beurden, CSR's chief executive, and finance director Will Gardiner will have the two senior executive positions in the enlarged company, with Zoran's chief executive Dr Levy Gerzberg becoming a non-executive.Top performing sectors so far todayForestry & Paper 5,886.55 +2.15%Food & Drug Retailers 4,872.54 +0.49%Food Producers & Processors 4,960.43 +0.06%Bottom performing sectors so far todayTechnology Hardware & Equipment 797.25 -3.53%Alternative Energy 3,272.18 -2.87%Banks 5,087.69 -2.61%Automobiles & Parts 4,923.97 -2.45%Fixed Line Telecommunications 2,349.12 -1.67%