Sector movers: Tesco fails to join the party
The UK market is racing ahead today on hopes that the Bank of England will announce an interest rate cut tomorrow. Yesterday food retailer Tesco called on the Bank of England to cut interest rates tomorrow in an effort to revive consumer confidence in the run-up to Christmas and the new year. Ironically, the food retailing sector is the only sector not to participate in today's advance, due in part to Tesco shares falling back in the wake of yesterday's trading update.
In the thirteen weeks to 24 November Tesco's sales were up by 11.8% on the comparable 2006 period, up from a 9.2% growth rate seen in the first half of the company's financial year. International sales were up by 25.7% at actual exchange rates and by 21.4% at constant rates, with an especially good performance from Asia, where sales were 29% higher than last year at constant rates.
On the upside, real estate stocks are buoyed by hopes of an interest rate cut while the industrial metals sector is led higher by Talvivaara, which announced a 26% increase in measured and indicated mineral resources in the Kuusilampi and Kolmisoppi deposits in Sotkamo, Finland, yesterday.
Amino Technologies stands out in the telecommunications sector after an upbeat trading statement in which it said its turnaround is gathering pace and profits are ahead of market expectations.
The company, which designs and supplies electronic systems, software and consultancy for web-based TV, on-demand video and in-home multimedia distribution, said total unit shipments for the year have risen strongly. While the bulk of the shipments continue to be based on MPEG-2 technologies, sales of the higher priced MPEG-4 products account for a rapidly rising proportion of sales, with the percentage currently running at around 20% of total shipments.
Improved trading performance in conjunction with improvements in working capital and the granting of R&D tax credits has pushed Amino's net cash balances higher to about £17m at the end of November, compared with £14m at the end of November 2006.
Top performing sectors so far today
(Article continues below)Advertisement
Technology Hardware & Equipment 278.50 +3.34%
Industrial Metals 6,841.20 +2.63%
Automobiles & Parts 4,761.70 +2.29%
Real Estate 3,588.80 +2.28%
Fixed Line Telecommunications 3,771.50 +2.24%
Bottom performing sectors so far today
Food & Drug Retailers 5,541.90 -0.23%
