Sector movers: Engineers dominate at top and bottom of leaderboard

By Oliver Haill

Date: Tuesday 20 Mar 2018

Sector movers: Engineers dominate at top and bottom of leaderboard

(ShareCast News) - The industrial engineering sector led the way on Tuesday, while oil equipment & services was dropping like a stone.
Fenner was the main driver for UK industrials as the shares surged after the engineer agreed to be bought by French tyre giant Michelin in a deal worth around £1.3bn.

Shareholders in the FTSE 250 company will receive 610p in cash per share, which is a premium of around 31% to the closing price of 467p on 16 March. Fenner shareholders will also receive a dividend of up to 2.1p per share to be declared around 25 April.

Sector mates such as Bodycote and Hill & Smith were also on the front foot as investors had deals on the mind.

Shares in RHI Magnesita were also higher as the company formed from the merger of RHI and Magnesita reports its first full year results since listing in London at the end of October and joining the FTSE 250 in December. The historic numbers will primarily reflect a combination of the fortunes of the two businesses as separate entities, said broker Numis, hence recent trading, balance sheet and outlook "will prove the most meaningful".

The oil services sector was down principally due to Wood Group's results not being very well received. The engineering group, also recently expanded by merger, expects to see modest earnings growth in 2018, with analysts highlighting the company's cautious outlook.

Top performing sectors so far today

Industrial Engineering +1.95%
Industrial Metals & Mining +1.57%
Life Insurance +1.37%
Oil & Gas Producers +1.28%
Financial Services +1.23%

Bottom performing sectors so far today

Oil Equipment, Services & Distribution -3.98%
Leisure Goods -1.56%
Software & Computer Services -1.29%
Tobacco -0.90%
Gas, Water & Multiutilities -0.86%


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