Sector movers: Shell dampens energy stocks, gold miners track bullion lower

Worse-than-expected results from one of the biggest oil companies in the world hit stocks in the energy sector on Thursday.

Royal Dutch Shell delivered a 12% year-on-year increase in adjusted profits in the fourth quarter to $3.3bn, well below the consensus forecast of $4.2bn.

The company also announced that it is looking to reduce costs and lower investment in 2015 in response to the collapse in crude prices, as it curtailed over $15bn of potential spending over the next three years.

“To keep investors sweet the oil company announced a healthy dividend, but that wasn’t enough to win back traders' confidence as the enormous cut to capital expenditure signals cautious times ahead,” said analyst David Madden from IG.

Afren, Soco International, BP and Tullow Oil were all trading firmly in the red.

Smaller producer Soco International also disappointed by revealing that its forecast for 2015 production has been lowered, as it cut its spending budget for this year.

Meanwhile, mining stocks were weaker with precious metal producers among the worst performers as gold prices dropped on the back of a stronger dollar.

Bullion was down 1.8% at $1,263 an ounce in afternoon trade, its worst daily fall in over a month.

Mexican miner Fresnillo and Africa-focused peer Randgold were falling sharply, down 5.4% and 3.2% respectively. Centamin and Acacia Mining were also under the weather.

Bucking the trend was Russian precious metals group Polymetal which rose 1.4% after beating guidance with its full-year production guidance.

Top performing sectors so far today
Household Goods & Home Construction 13,464.15 +1.47%
Beverages 15,151.84 +1.21%
Personal Goods 27,310.40 +1.02%
Electricity 9,421.15 +0.73%
Tobacco 44,299.55 +0.61%

Bottom performing sectors so far today
Oil Equipment, Services & Distribution 15,086.61 -4.33%
Oil & Gas Producers 6,988.25 -3.71%
Industrial Metals & Mining 1,705.80 -2.48%
Chemicals 11,298.94 -1.94%
Mining 13,462.63 -1.58%