Sector movers: Mining stocks dive

20.03.2008

Our Most Popular Articles

This genius investor does dizzying levels of research to uncover...Half Price Shares!

Mining stocks have looked like a one way bet for much of this year but they are getting their come-uppance today as gold and metal prices continue to slump.

Gold futures are on course for the biggest price slump in 25 years as the US dollar continues to recover on speculation that the days of big interest rate cuts are over.

The yellow metal is priced in US dollars and therefore usually suffers when the greenback prospers, and it is also bought as a hedge against inflation; consequently, the Fed's publicly voiced concerns about inflation and its decision not to cut interest rates by a full point are seen as bearish omens for gold.

Gold futures for April delivery fell 3% in early trading in New York to $917.30 an ounce.

Copper prices are also in the doldrums, on fears that demand may be curtailed by a US recession.

Bathroom suites manufacturer Qualceram Shires has received an unsolicited preliminary expression of interest from a third party.

"It should be emphasised that discussions are at a very early stage and that there is no certainty that they will lead to an offer," it said.

The group also announced year end results with pre-tax profits increasing to €5.3m from €3.9m before on turnover that fell 11.7% to €90m.

It said turnover for January and February of 2008 is down 27% on the same period last year due to challenging market conditions in both its key markets.

"It is anticipated that 2008 will be a challenging year and the board have already taken decisive action to reduce costs further in order to counteract the downturn in house building and worsening markets," said the group.

Top performing sectors so far today