Sector movers: More M&A talk lifts miners
The mining sector was higher today led by Rio Tinto which was boosted by continued speculation of a takeover from BHP Billiton. Rio is said to have 'opened its books' to BHP on the basis of BHP parting with 3.5 of its shares for every one of Rio's, up from the three-for-one offer rejected by Rio in November.
Vedanta was also higher after following its third quarter results that prompted Cazenove to keep its 'outperform' stance and Merrrill Lynch its 'buy' rating on the India-focussed miner.
Also, South Africa's state run utility Eskom has agreed to increase electricity supply said miners Anglo American, Lonmin, Aquarius Platinum and International Ferro Metals. Power shortages in the country resulted in some miners halting their operations there.
Pharmaceutical stocks were down led by Shire, which was lower on continued concerns over its hyperactivity treatment Vyvanse. Goldman Sachs lowered its rating on the drugs giant saying it no longer expects to see an acceleration in prescriptions of the drug.
Top performing sectors so far today
Mobile Telecommunications 4,012.90 +1.81%
Industrial Metals 6,173.00 +1.71%
Mining 21,914.30 +1.53%
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Health Care Equipment & Services 3,904.80 +0.97%
Software & Computer Services 454.30 +0.87%
Bottom performing sectors so far today
Automobiles & Parts 4,221.20 -2.99%
Pharmaceuticals & Biotechnology 7,413.00 -1.69%
Technology Hardware & Equipment 249.00 -1.62%
Chemicals 4,771.60 -1.50%
Life Insurance 4,995.20 -1.46%
