Sector movers: Auto suppliers and banks rally
Car suppliers and banks were the top sectors on Monday, while defensive sectors were in the red.
Automobile and parts benefitted as China was reported to be looking to try and mitigate the impact of its trade war with the US by cutting the tax levied on car purchases. China’s main economic planning body is proposing to halve the tax, according to Bloomberg, to support sales. Beijing last cut car taxes three years ago, causing sales to temporarily surge.
Car companies and suppliers around the world motored ahead on the Bloomberg report, including Melrose Industries - due to its GKN business - in top gear; Johnson Matthey, which supplies catalytic converters, and TI Fluid Systems, which makes brake fluid and fuel lines.
Banks were universally in the green as HSBC's third-quarter results helped spark a more positive look at the sector, with last week's results from RBS also given a positive review by several brokers.
HSBC reported better than expected profits for the third quarter as all three of the bank's main businesses enjoyed good growth and progress was made with cost cutting efforts. Shares of fellow Asia-focused bank Standard Chartered was also given a boost.
After RBS said on Friday that it had set aside an extra £100m to cover any uncertainly caused by Brexit, including possible bad loans, its shares rallied on Monday amid comments such as from Berenberg analyst Peter Richardson, who said RBS was being “penalised for prudence”, while analysts at Barclays pointed to “significant value”.
The tobacco sector was down along with other defensive sectors as beverages and food producers, as investors overlooked these areas in the day's risk-on mood.
Top performing sectors so far today
Industrial Metals & Mining 4,920.04 +4.31%
Automobiles & Parts 8,007.12 +4.27%
Banks 3,799.51 +3.76%
Fixed Line Telecommunications 2,754.38 +3.60%
Industrial Engineering 11,276.46 +2.83%
Bottom performing sectors so far today
Tobacco 40,331.16 -1.12%
Beverages 21,383.06 -0.22%
Aerospace and Defence 4,757.48 -0.20%
Food Producers & Processors 7,129.16 -0.20%
Alternative Energy 0.00 0.00%
Market Movers
FTSE 100 (UKX) 7,057.16 1.69%
FTSE 250 (MCX) 18,653.02 1.64%
techMARK (TASX) 3,276.92 2.01%
FTSE 100 - Risers
Melrose Industries (MRO) 163.00p 5.84%
HSBC Holdings (HSBA) 636.50p 5.21%
Evraz (EVR) 527.00p 4.77%
Royal Mail (RMG) 364.10p 4.42%
Standard Life Aberdeen (SLA) 268.05p 4.30%
Ferguson (FERG) 5,198.00p 4.16%
BT Group (BT.A) 238.65p 3.94%
Smith (DS) (SMDS) 380.00p 3.83%
Ashtead Group (AHT) 1,879.50p 3.73%
Smiths Group (SMIN) 1,379.50p 3.64%
FTSE 100 - Fallers
Fresnillo (FRES) 887.60p -2.44%
Randgold Resources Ltd. (RRS) 6,276.00p -2.18%
British American Tobacco (BATS) 3,558.50p -1.67%
Reckitt Benckiser Group (RB.) 6,589.00p -1.21%
Just Eat (JE.) 596.80p -0.83%
Rolls-Royce Holdings (RR.) 848.20p -0.80%
Associated British Foods (ABF) 2,378.00p -0.79%
Centrica (CNA) 146.90p -0.51%
BAE Systems (BA.) 529.80p -0.41%
Diageo (DGE) 2,684.50p -0.39%
FTSE 250 - Risers
Superdry (SDRY) 767.00p 8.03%
Energean Oil & Gas (ENOG) 634.00p 7.46%
Capita (CPI) 126.90p 5.53%
Convatec Group (CTEC) 155.00p 5.51%
Inchcape (INCH) 526.50p 5.51%
Hill & Smith Holdings (HILS) 1,007.00p 5.50%
Sophos Group (SOPH) 427.73p 5.20%
Computacenter (CCC) 1,268.00p 5.14%
Weir Group (WEIR) 1,521.00p 5.11%
Babcock International Group (BAB) 612.40p 4.90%
FTSE 250 - Fallers
BBA Aviation (BBA) 234.00p -3.62%
Plus500 Ltd (DI) (PLUS) 1,329.00p -3.06%
Ibstock (IBST) 213.00p -3.01%
Clarkson (CKN) 2,398.79p -2.88%
Rank Group (RNK) 151.40p -2.20%
Syncona Limited NPV (SYNC) 242.50p -2.02%
Vietnam Enterprise Investments (DI) (VEIL) 426.00p -1.39%
Sanne Group (SNN) 549.00p -1.08%
Polymetal International (POLY) 714.20p -1.08%
FDM Group (Holdings) (FDM) 812.00p -0.98%