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Sector movers: Lenders and industrial miners pace gains amid search for yield

By Alexander Bueso

Date: Thursday 04 Apr 2024

Sector movers: Lenders and industrial miners pace gains amid search for yield

(Sharecast News) - Lenders' and miners' shares helped London's top-flight index outperform amid a renewed focus on the part of some investors on so-called 'value' stocks.
Among the former of those two sectors, StanChart shares were offering a rather pedestrian 3% dividend yield, while HSBC was changing hands on a lofty yield of around 7.5%.

UK-focused banking groups including Barclays, Lloyds and NatWest nevertheless were all offering sizeable yields too, which appeared to explain the fresh 52-week highs hit by their shares on Thursday.

"Today's action on the FTSE 100 has been driven by a combination of mining stocks and yield plays," explained IG chief market analyst Chris Beauchamp.

"While the commodity rally might be taking a breather today, mining stocks like Fresnillo and Anglo American have been firm favourites of late, and there's no sign of that move slowing down. Meanwhile investors continue to snap up yield stocks, as expectations of lower rates later in the year dominate."

On that note, overnight Fed chief Jerome Powell told an audience that the outlook for rate cuts in 2024 had not changed as a result of recent inflation data.

Stoking interest in miners, COMEX copper futures hit 14-month highs at around $4.2390 per pound.

Market commentary pointed to output disruptions at various large mines, improved factory survey data globally, an Indian infrastructure push and AI-related demand as reasons behind the move.

Top performing sectors so far today

Automobiles & Parts 1,239.44 +2.64%

Industrial Transportation 4,146.16 +1.93%

Banks 3,952.72 +1.86%

Real Estate Investment & Services 2,246.09 +1.42%

Household Goods & Home Construction 12,879.16 +1.40%

Bottom performing sectors so far today

Non-life Insurance 3,607.36 -1.41%

Retailers 3,903.24 -1.07%

Tobacco 26,508.98 -0.93%

Leisure Goods 24,713.38 -0.92%

Beverages 22,903.98 -0.68%


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