Sector movers: Mixed fortunes for software companies
Miners are predictably lower this morning in line with weaker metal prices. Sector heavyweight Rio Tinto joins its peers in the doghouse despite reporting a 65% hike in refined copper production during the fourth quarter, while gold output was almost double the level seen a year earlier.
The software sector is mixed but predominantly lower. Two stocks experiencing varying fortunes after trading updates this morning are Sinosoft and ClinPhone.
Sinosoft, the China-based developer and provider of software and IT solutions, slumps after saying that the previously announced delay in the SAT contract prevented the company's revenue growth from meeting expectations in 2007.
The company said net profits continue to grow and its cash position was positive to the tune of $18m at the end of 2007.
Clinical trial services technology provider ClinPhone surges ahead, however, after the management said expectations for 2008 are materially ahead of previous expectations.
The company attributed the improvement in performance to the operational restructuring implemented after the difficulties suffered in the summer of 2007.
Food producers have been off colour thus far in 2008 but there are signs of a recovery today, with Unilever and Cadbury leading the way.
Northern Foods is also going well after reporting yesterday that trading in the key Christmas period has been in line with forecasts. The ready meals group expects pre-tax profit to achieve market consensus for the full year.
Underlying revenue rose by 3.5% in the 13 weeks ended 29 December, reflecting average prices 3.5% higher and unchanged volumes. Third quarter operating margin improved and net debt stands at £213m.
In the year to date, underlying revenue grew by 3.0%, with prices 1.8% higher and volumes up 1.2%.
Shares in Gold Frost plummeted Wednesday, however, after the kosher food specialist warned that gross and net profit for the year ended 31 December will be below expectations.
The group said it continues to experience cost pressures due to weather related problems, reduced milk production and cessation of EU dairy export subsidies.
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Top performing sectors so far today
Automobiles & Parts 3,953.00 +2.25%
Real Estate 3,387.30 +1.55%
Pharmaceuticals & Biotechnology 8,222.70 +0.94%
Food Producers & Processors 4,422.20 +0.87%
Household Goods 6,084.80 +0.63%
Bottom performing sectors so far today
Mining 21,631.90 -3.77%
Industrial Metals 6,926.40 -3.75%
Technology Hardware & Equipment 219.70 -3.43%
Oil Equipment Services & Distribution 14,283.10 -3.23%
Software & Computer Services 435.40 -2.81%
