Sector movers: Pharmaceuticals fall, GKN drives autos higher

24th Nov 2011 15:44

Pharmaceutical companies, typically defensive stocks, were the worst performers of the day on Thursday.With an increase in risk appetite benefiting the banking and mining sectors today - after some well-received growth data from Britain and Germany - stocks such as Shire, AstraZeneca and GlaxoSmithKline were being sold off.Utilities were also out of favour, with National Grid, Severn Trent and United Utilities falling into the red.Meanwhile, the automobiles and parts sector was making gains, with sector giant GKN driving stocks higher. Blue chip automotive and aerospace engineer GKN was on the rise today after announcing that senior independent director Michael Turner is to succeed Roy Brown as chairman when he retires next May. Turner, the former chief executive of BAE Systems and current chairman of Babcock International, joined the board in September 2009 and was appointed to his current position in May 2010. Chief executive Nigel Stein said, "Mike has a wealth of experience in the engineering sector which will be invaluable. I would also like to take this opportunity, on behalf of the board, to thank Roy Brown for his contribution to the success of the Company over the last 15 years."Helping gains was Evolution Securities, which reiterated its buy recommendation on the stock. Analyst Harry Philips said: "A 2012 free cash flow yield of 11% highlights the core value proposition in the stock."He added that the shares are currently trading on an enterprise value-to-sales multiple of 0.44 which assumes a 50% fall in forecasts from Evolution's 2011 trading profit estimate of £564 - "we consider this scenario unlikely", he said.BCTop performing sectors so far todayAutomobiles & Parts 3,972.37 +2.16%Industrial Engineering 6,463.67 +2.14%Industrial Metals & Mining 3,800.36 +2.07%Forestry & Paper 4,542.28 +1.98%Mining 18,547.46 +1.30%Bottom performing sectors so far todayPharmaceuticals & Biotechnology 9,111.51 -1.70%Oil & Gas Producers 7,717.65 -1.45%Food Producers & Processors 5,217.52 -1.41%Gas, Water & Multiutilities 4,582.22 -1.05%Insurance (non-life) 1,276.88 -0.86%