Sector movers: Life insurers bounce, retail flat despite strong data
Life insurers were in the pink again on Thursday, while the retailers were flat despite strong industry data.
The life insurance sector was up for the second day running after having found a level after a mini-correction in recent months. Since mid-May, where shares were close to three-year highs, the likes of Aviva, Legal & General and Prudential had by earlier in the week sunk 11-14%, with Aviva coming close to a two-year low.
The pullback came as US Treasury yields hit 3.1% then fell back, before climbing back to around 3.1% again.
Retailers were mixed despite another unexpectedly strong round of sector data from the Office for National Statistics. Retail sales in August rose 0.3% month on month, when they had been forecast to fall by the same amount, lifting August sales therefore were up 3.3% compared to the same month last year, well ahead of the 2.2% gain expected.
There were with increases across all sectors except food and clothing, with household goods enjoying their largest monthly jump in sales for more than two years.
Marks & Spencer, Next, Dixons Carphone and Sports Direct were among the risers, while Kingfisher and B&M European Value were in the red.
Having sunk a day earlier the personal good sector was flat, with Burberry down 4% but balanced out by larger Unilever being back in positive territory.
Burberry was hit as suited and booted City analysts cast their eye over the London Fashion Week debut of the fashion house's new creative director, Ricardo Tisci.
JP Morgan Cazenove said it was "good news" that Tisci was "proving through the breadth of this offering that he is cognizant of the broad appeal of the Burberry brand", embracing the breadth and size of the Burberry brand in comparison to the the more niche haute couture of Givenchy.
"The bad news is that in trying to please everyone he might be losing out on the brand new messages. In our experience, brand turnarounds typically reduce SKUs and concentrate brand messages on fewer key pieces before re-expanding the breadth of the offer (in year 2). This is not what Burberry and R Tisci did in this first collection," analysts said, also suggesting that Burberry’s daywear classic looks were "possibly too easy to copy" by the mass market.
Top performing sectors so far today
Leisure Goods 9,652.45 +7.20%
Technology Hardware & Equipment 1,052.15 +4.22%
Life Insurance 8,277.44 +1.92%
Industrial Metals & Mining 4,810.50 +1.67%
Beverages 21,337.60 +1.60%
Bottom performing sectors so far today
Fixed Line Telecommunications 2,627.69 -0.75%
Pharmaceuticals & Biotechnology 14,173.30 -0.59%
Tobacco 39,584.83 -0.57%
Mobile Telecommunications 3,748.88 -0.53%
Automobiles & Parts 10,732.78 -0.23%