LONDON (ShareCast) - Auto stocks were making gains on Wednesday as sentiment in the sector was lifted by a bullish statement by Toyota and an improvement in UK car sales.

Car-making giant Toyota raised its annual profit forecast as a weaker yen and cost-cutting measures boosted earnings in the six months through September.

The Japanese firm expects 1.67trn yen in net profit for the year ending March 2014, compared to a previous forecast of 1.48trn yen.

Meanwhile, data showed today that UK car sales rose in October by 4%, boosted by strong private demand. The Society of Motor Manufacturers and Traders (SMMT) said registrations so far this year are 10.2% higher than the same time in 2012.

The industry body revised its forecast for car sales this year to 2.25m from 2.22m previously, up 10% from the prior year. However, it only expects 1% growth in 2014 and 2015 as the market stabilises.

Engineering group GKN, which operates in the auto components industry through its division Driveline, was one of the biggest risers on the FTSE 100 in London today, rising 1.9% to 371.7p before the close.

The stock has now risen by an impressive 62.5% so far this year and is now trading close to levels not seen since 2007.

GKN announced last month that group sales in the third quarter were up 16% year-on-year at £1.87bn. In regards to its automotive activities, the company highlighted that global light vehicle production had risen by 4% with good growth in China and North America and slight improvements seen in Europe and Japan.


Top performing sectors so far today
Industrial Metals & Mining 1,525.89 +2.27%
Automobiles & Parts 8,662.53 +1.59%
Software & Computer Services 1,130.16 +1.22%
Industrial Engineering 10,500.95 +1.13%
Media 6,485.16 +1.07%

Bottom performing sectors so far today
Forestry & Paper 11,503.81 -4.30%
Gas, Water & Multiutilities 5,708.57 -0.84%
Food Producers & Processors 7,135.33 -0.79%
Household Goods & Home Construction 10,795.66 -0.76%
Chemicals 9,815.93 -0.71%

BC

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