FTSE 250 movers: Credit Suisse downbeat on gold stocks, oilfield services get some love

Hochschild Mining

236.00p

14:35 08/11/24

0.43%

1.00p

Shares of oilfield services outfits and precious metals miners listed on the second-tier index were bid up, as oil and gold futures were pushed higher in the wake of a 'dovish' semiannual testimony from Federal Reserve chairman Jerome Powell before the US House of Representatives financial services committee on Wednesday.

FTSE 250

20,533.27

14:35 08/11/24

n/a

FTSE 350

4,463.98

14:35 08/11/24

n/a

FTSE All-Share

4,422.38

14:35 08/11/24

n/a

Mining

11,642.29

14:35 08/11/24

1.47%

168.17

Polymetal International

215.00p

16:35 31/07/23

0.00%

0.00p

In response to his remarks, August gold on Comex was changing hands 0.89% higher on the day at $1,413/oz., benefiting the likes of Hochschild Mining.

Polymetal on the other hand was left out.

To take note of in that regard, the day before strategists at Credit Suisse warned clients to proceed with caution when it came to miners in that segment of the market.

"We would be cautious of expensive gold stocks (we show that two of the three macro drivers of gold are problematic, near record net longs, and gold is expensive on our models and against other precious metals)," top-ranked strategist Andrew Garthwaite and his colleagues wrote in a research note sent to clients.

Oil field services firms however were getting some love from investors as Brent crude oil futures raced 3.99% higher to $66.72 a barrel.

Also the day before, analysts at Barclays had sounded a 'bullish' note on the European Oil Services and Drilling space.

"2Q19F will likely be seen as another step on the road to recovery for the sector," they told clients.

"While some companies can point to encouraging backlog wins, more are going to point to tendering levels that are increasing and an expectation of a brighter future."

FTSE 250 - Risers

IP Group (IPO) 74.60p 5.07%
Premier Oil (PMO) 78.66p 4.38%
Petrofac Ltd. (PFC) 423.90p 3.07%
Mediclinic International (MDC) 322.20p 3.07%
Playtech (PTEC) 445.20p 3.06%
Hunting (HTG) 542.00p 3.04%
Capita (CPI) 112.40p 3.02%
Future (FUTR) 928.00p 2.65%
Wetherspoon (J.D.) (JDW) 1,444.00p 2.56%
Hochschild Mining (HOC) 201.00p 2.29%