Sharecast News
06 Mar, 2021 18:03 06 Mar, 2021 18:03

Sector movers: Losses in Financial Services offset by gains for Banks and Oil majors

trader a la bourse de new york new york stock exchange wall street

Investors in Financial Services got the short end of the stock on Friday, as shares in the London Stock Exchange Group were hit by a wave of selling after the stockmarket operator flagged its intention to increased spending on its integration with Refinitiv in 2021.

The owner of the UK's premier trading venue forecast capital expenditures of £850m for the year ahead with £150m of associated operating costs.

To take note of nevertheless, despite Friday's losses the shares had still roughly doubled in value over the preceding two years.

Travel stocks were also drag as investors took profits in the space amid news of rising numbers of Covid-19 infections on the Continent, including in Germany and Italy.

Going the other way, bank and oil stocks continued to find the most favour, with the former benefiting from rising government bond yields and the latter from the continued run higher in the price of Brent.

Typically, both sectors tend to do well during so-called 'bear steepening' phases in the bond market, which are characterised by rising interest rates and a decline in estimate for companies' earnings per share.

On this ocassion however they rose alongside Technology Hardware and Equipment names.

Fixed Line Telecommunications meanwhile was boosted after Credit Suisse analysts told clients that BT Group would benefit from higher inflation, which would help pricing for its services, and rising bond yields, which help it reduce its pension deficit.

Top performing sectors so far today

Technology Hardware & Equipment 1,920.53 +6.56%

Fixed Line Telecommunications 1,692.86 +4.54%

Oil Equipment, Services & Distribution 5,759.21 +3.70%

Banks 2,855.71 +2.02%

Oil & Gas Producers 5,462.28 +1.65%

Bottom performing sectors so far today

Financial Services 11,870.58 -5.14%

Travel & Leisure 9,011.99 -3.46%

Aerospace and Defence 3,490.91 -3.45%

Equity Investment Instruments 12,162.57 -2.87%

General Industrials 6,517.13 -2.36%


News Source: © 2021 Web Financial Group (UK) Limited. All rights reserved and terms of use apply.

Important Legal Notice about News Sources: Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news and we may not share the views of the author or publisher. We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.

 

Important Legal Notice about News Sources

Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author or publisher.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.