Sector Movers: Miners on the up but FTSE 100 retreats on disappointing GDP data

Mining stocks led the FTSE 100 on Tuesday as disappointing economic data weighed on blue chip trading sentiment.

At 16:17 BST on Tuesday, the FTSE 100 was trading at 7020.02 down 1.18% or 83.96 points, as UK economic growth came in below market expectations. In a scheduled data release, the Office for National Statistics said gross domestic product (GDP) expanded at a quarter-on-quarter pace of 0.3% in the three months ended in March, after an expansion of 0.6% in the last quarter of 2014. Economists had pencilled in a gain of 0.5%.

The performance, which was held back by a marked contraction in construction output, was the worst since the fourth quarter of 2012. However, in comparison to a year ago GDP was 2.4% higher. The response of the market was largely negative with hardware and equipment (down 2.55%), pharmaceuticals and biotechnology (down 2.47%), household goods (down 2.06%) and travel & leisure (down 1.67%) bearing the brunt.

However, mining, minerals and metals related stocks largely bucked the trend on speculation of further Chinese economic stimulus. The copper market continues to strengthen with the LME three-month contract closing up 1% or $61 at $6097 per tonne overnight.

Fresnillo (up 2.34%), Anglo American (up 2.04%) and BHP Billiton (up 1.02%) were among the blue chip gainers with the mining index trading up 0.46% or 68.45 points at 14,864.68. Additionally, the industrial metals and minerals index was up 1.32% or 24.62 points at 1,891.94 points.

Meanwhile, Centrica (up 2.16%), which is facing severe political headwinds in the run up to the UK general election, led the utilities sector higher after its chairman was quoted saying the company has made preparations in the event of a takeover offer.

Selected oil and gas stocks traded in the green, despite oil major BP having posted lacklustre data. The company’s shares were broadly flat despite posting an underlying replacement cost profit decline for the three months to end-March.

In Tuesday's trading statement, the oil giant said profit for the last quarter came in at $2.6bn compared with $3.2bn for the same period in 2014. Other notable upticks in the sector came from independent mid-caps Ophir Energy (up 2.58%) and Tullow Oil (up 3.69%).

Ophir Energy posted gains after reaching an agreement to acquire four production sharing contracts in Indonesia from Niko Resources. The group said the deals cover the West Papua IV, Aru, Kofiau and Halmahera-Kofiau deepwater sites in Indonesia, adding it was in the process to secure two further contracts from Niko, covering the North Makassar Strait and North Ganal area.

Momentum continued to carry Tullow Oil after the weekend's news that the International Tribunal for the Law of the Seas ruled in its favour, allowing the outfit to continue with its exploration activities offshore Ivory Coast. The company is also seen as a takeover target by BP according to many City traders.

Top Five Sectors

Industrial Metals & Minerals 1,891.94 +24.62 +1.32%
Electricity 9,533.68 +65.92 +0.70%
Mining 14,864.68 +68.45 +0.46%
Gas, Water & Multiutilities 6,098.32 +7.03 +0.12%
Fixed Line Telecommunications 5,282.81 +1.66 +0.03%