Sector movers: Travel, Retail and Mining pace gains
By Alexander Bueso
Date: Wednesday 23 Nov 2022
(Sharecast News) - Cyclicals including Travel and Leisure, as well as consumer staples, paced gains on the FTSE 350 in relatively flattish to mixed trading given the absence of many traders from their desks due to the Thanksgiving Day holiday in the US.
Helping to maintain the risk-on sentiment in markets were a raft of much better-than-expected readings for surveys of manufacturing and services sector activity on both sides of the Channel.
That was especially the case for S&P Global's services PMI which was unchanged from the month before at 48.8 (consensus: 48.0) and was likely behind the strength in Retail shares.
In the Travel and Leisure space meanwhile, shares of Whitbread were outperforming after analysts at J.P.Morgan lifted their 2023 earnings per share estimates for the company by 8%, placing them on Positive Catalyst Watch.
Nonetheless, they said that a key point of debate remained when a slowdown would materialise and to what extent.
Industrials Metals and Mining meanwhile benefitted from positive comments out of Deutsche Bank which also raised its target price for Glencore from 500.0p to 560.0p.
In their opinion there was insufficient supply to meet future energy transition-related demand.
But here too there was a caveat, notwithstanding the sector's "strong" medium-term fundamentals, in the form of "high" macro risks.
Hence, on a 6-12 month view they preferred stocks with string free cash flows, "growth kickers" and self-help catalysts.
Glencore was also among their top picks in the sector.
Top performing sectors so far today
Travel & Leisure 6,513.49 +1.61%
Retailers 3,226.09 +1.55%
Industrial Metals & Mining 7,443.42 +1.36%
Food Producers 5,703.48 +0.87%
Leisure Goods 18,831.01 +0.87%
Bottom performing sectors so far today
Electricity 10,410.12 -1.55%
Real Estate Investment Trusts 2,324.00 -1.44%
Pharmaceuticals & Biotechnology 20,519.99 -0.34%
Telecommunications Service Providers 2,382.09 -0.22%
Aerospace and Defence 4,806.65 -0.17%
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