Sector movers: Industrial Metals and Mining stocks lead gains

Industrial metals and mining stocks paced gains in the last session of the week on reports of falling copper and zinc stockpiles in Shanghai, amid speculation demand for steel might be set to head higher.

As of 16:55 GMT July 2017 COMEX-traded copper futures were 0.66% higher to $2.61 a pound, with Chinese iron futures having gained from $66.2 per metric tonne to $68.0 overnight.

Analysts at SP Angel said there are indications that the market expects a pickup in demand for pricing of steel.

"Chinese iron ore futures are volatile at the best of times but there are indications that the market may expect a pickup in demand and pricing for steel. Spot iron ore prices have been weak in recent weeks but may follow the futures price if stronger demand for steel helps product prices," they said.

The rise in metals' prices saw shares in Vedanta, Anglo American, Antofagasta, BHP Billiton and Rio Tinto gain altitude.

Renishaw was the top performing stock among Electronic and Electrical equipment suppliers, after analysts at Redburn said there were signs that Apple might be plotting to launch its iPhone 8.

Although never confirmed explicitly the broker believes Renishaw's probes might be used in the machining of the cases of the phones.

If that is the case, earnings per share upgrades of between 10% and 30% are possible for Renishaw, the broker said.

Halma also received a positive endorsement, but out of Morgan Stanley.

"Halma and Spirax are both long-term outperformers and historically their shares prices have been 97% correlated. Halma's underperformance vs Spirax over the last 12M looks overdone and we advocate rotating into Halma," that broker pointed out.

Analysts at Jefferies accounted for weakness in Royal Mail after cutting their target on the stock from 360.0p to 330.0p.

"The FY17/18E outlook is dependent on the outcome of labour negotiations about pay and pensions, which could take until the end of the summer. We believe risks remain to the downside and stick to our Underperform rating with a lowered 330p PT."

Top performing sectors so far today
Industrial Metals & Mining 2,306.46 +3.90%
Mining 14,945.64 +1.75%
Automobiles & Parts 8,391.32 +1.41%
Electronic & Electrical Equipment 5,887.05 +1.23%
Food & Drug Retailers 2,991.31 +0.84%

Bottom performing sectors so far today
Industrial Transportation 3,040.98 -1.74%
Mobile Telecommunications 4,519.98 -1.62%
Household Goods & Home Construction 17,830.78 -0.99%
Fixed Line Telecommunications 3,532.25 -0.87%
Real Estate Investment & Services 2,747.62 -0.77%