No #5

The Financial Daily - - ECON­OMY & CON­TIN­U­A­TION -

Min­ers, which now trade above their 20- and 50-day mov­ing av­er­age, led the gains as in­vestors re­fo­cused on stocks that pro­vide hopes for earn­ings growth.

IN­DUS­TRIAL SUP­PORT Rolls Royce gained 1.7 per cent af­ter HSBC up­graded the aerospace and de­fence firm to "over­weight", cit­ing growth prospects and shrug­ging off con­cerns over the im­pact of high oil prices. Rolls Royce shares are flat on the year but trade just above their 50-day mov­ing av­er­age of around 619 pence, on a for­ward price-earn­ings ra­tio of 13.8 times com­pared with a sec­tor av­er­age of 10.4, Thom­son Reuters data showed.

"The up­dates com­pa­nies have been giv­ing in­vestors since the oil price picked up have in­di­cated that price can be passed on and that de­mand is hold­ing up," Colin McLean, man­ag­ing di­rec­tor at the 650 mil­lion pound ($1.04 bil­lion) Scot­tish Value Man­age­ment in Ed­in­burgh, said.

He said in­dus­tri­als; tech stocks and chem­i­cals pro­duc­ers look well placed. In­dus­tri­als such as IMI and Weir Group, up 1.9 and 1.2 per cent re­spec­tively, ben­e­fit­ted from an up­beat note on the sec­tor from RBC Cap­i­tal Mar­kets. IMI was RBC's top pick but it said In­ven­sys and Smiths Group, down 2.3 and 1.1 per cent re­spec­tively, may un­der­per­form UK peers.

Smiths, An­glo Amer­i­can, Bri­tish Land, Bri­tish Sky Broad­cast­ing, Eurasian Nat­u­ral Re­sources and Pru­den­tial all traded with­out their div­i­dend at­trac­tions. Traders said bid talk boosted Cen­trica, up 2.5 per cent on strong vol­ume, with traders cit­ing talk that Span­ish peer Iber­drola was set to make a bid. Traders also cited talk of bid in­ter­est in fash­ion group Burberry, which added 2 per cent.-Reuters

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