Sector movers: Miners rise on Chinese lending data, US dollar weakness

Mining stocks were again in favour on Thursday as metals´ prices continued to gain in overnight trading on the heels of stronger than expected lending data for Asia´s largest economy and positive newsflow on specific commodities.

Continued selling in the US dollar after the President-elect disappointed some in the markets hoping for further details on his economic plans in a speech on the previous day also boosted precious metals miners as the underlying metals jumped in price as a result.

So-called Total Social Financing in China increased by 1,640bn yuan in December, after a rise of 1,740bn in the month before.

The data prompted analysts at Capital Economics to tell clients: "we expect the gradual slowdown in broad credit growth since last summer to continue in the coming months. This will start to weigh on economic activity before long, with economic growth likely to begin slowing again sooner than many are currently anticipating."

Nonetheless, at 1,300bn yuan the consensus forecast for the TSF data had been much weaker.

One trader also referenced reports that Freeport and other miners had stopped copper exports from Indonesia as the reason for the price gains in that metal.

GKN kept the Automobile sector in the green.

Chinese vehicles sales soared 13.7% in 2016 to 28.0m units in comparison to the previous year - the biggest increase since 2013 - on the heels of tax cuts on smaller engine automobiles.

Food producers on the other hand proved a drag, as AB Foods retreated despite what analysts at Numis dubbed an "encouraging" trading update.

The company reported a 10% rise in sales for the 16 weeks to 7 January, with revenues at current exchange rates rocketing 22%.

Nonetheless, Numis did downgrade its recommendation on the stock from a 'buy' to 'add' following the news.

Pharma and Biotech stocks were the second worst performing sector in the market a day after Donald Trump singled out the sector for what some politicians believe are excessively high prices.

His remarks in New York were unexpected as they aligned him with congressional Democrats who have campaigned to lower drug prices.

Top performing sectors so far today
Forestry & Paper 18,709.85 +5.27%
Mining 16,319.73 +1.58%
Automobiles & Parts 7,947.09 +1.49%
General Industrials 5,909.72 +1.32%
Electricity 9,225.56 +1.23%

Bottom performing sectors so far today
Food Producers & Processors 7,740.00 -2.63%
Pharmaceuticals & Biotechnology 13,501.70 -1.25%
Fixed Line Telecommunications 4,450.76 -1.21%
Health Care Equipment & Services 7,341.69 -1.00%
Electronic & Electrical Equipment 5,149.21 -0.99%