FTSE 100 movers: Miners pace gains on China fiscal stimulus talk
By Alexander Bueso
Date: Thursday 18 Aug 2022
(Sharecast News) - Miners Antofagasta paced gains on the top-flight index on Thursday amid further market chatter around the possibility of Chinese fiscal stimulus.
Citing local state media, analysts at SP Angel said local governments might sell over £229bn in debt to finance more stimulus as the economic landscape darkens.
On the flip-side, local Covid-19 cases reached a three-month high of 3,424.
Glencore was also on the up as analysts at Barclays Research reiterated the stock as a 'top pick'.
"Yet investors continue to ignore the multiples and yield on offer, partly reflecting backward-looking ESG concerns," they said in a research note sent to clients.
"We argue these are less relevant going forward, given structural changes made over the last 18 months, and highlight more to come. Glencore remains our Top Pick."
An upwards price target revision from 155.0p to 165.0p by RBC analysts lifted Centamin.
"H1'22 has proven out to be an inflection point for Centamin. Ongoing improvements in operational performance and costs should provide an uplift
in free cash flow and dividends," they said.
"Potential resource additions, Doropo and the new exploration block provide further optionality."
Oil majors BP and Shell also lent their heft to the upside as crude oil and natural gas quotes rose.
"Yesterday's surprise 7.1 million barrel contraction in US inventories helped undermine the bearish breakdown taking shape for crude, lifting hopes that a tightening supply-demand dynamic will push prices upwards once again," said IG senior market analyst Joshua Mahony
"However, with an economic slowdown seemingly a foregone conclusion for many of the world's top crude consumers, it looks likely that this rebound will soon be sold into on the premise of lower demand."
Front-dated Brent crude oil put on 2.93% to $96.58 a barrel on the ICE, while TTF gas futures were up by 13.16% to €239/MWh.
Aviva, Legal & General and HSBC moved lower as they traded without the rights to their latest dividend.
Market Movers
FTSE 100 (UKX) 7,541.85 0.35%
FTSE 100 - Risers
Harbour Energy (HBR) 396.30p 2.96%
Antofagasta (ANTO) 1,169.50p 2.59%
BP (BP.) 442.00p 2.58%
Prudential (PRU) 973.00p 2.46%
Glencore (GLEN) 498.25p 2.37%
Fresnillo (FRES) 729.80p 2.30%
Smiths Group (SMIN) 1,612.50p 2.25%
Persimmon (PSN) 1,741.00p 2.17%
Land Securities Group (LAND) 722.60p 2.09%
British Land Company (BLND) 473.90p 1.91%
FTSE 100 - Fallers
Aviva (AV.) 439.40p -4.23%
Legal & General Group (LGEN) 270.60p -4.14%
Hikma Pharmaceuticals (HIK) 1,441.00p -3.32%
JD Sports Fashion (JD.) 124.60p -2.81%
Abrdn (ABDN) 161.85p -2.50%
M&G (MNG) 208.90p -2.34%
Ocado Group (OCDO) 901.00p -2.26%
Anglo American (AAL) 2,907.00p -2.01%
B&M European Value Retail S.A. (DI) (BME) 416.30p -1.58%
Reckitt Benckiser Group (RKT) 6,514.00p -1.48%
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