Uptrend Continued in Mining Stocks
The iShares MSCI United Kingdom ETF (EWU) climbed by 2.67% on Friday, October 2, 2015. Of its 109 constituent stocks, 85 returned positive gains on the day. The mining sector recovered on the day with rises in the prices of gold and other precious metals.
Fresnillo (FRES), a gold and silver mining company, continued its rise, gaining 4.8% on October 2 and trading at 633.50 pounds sterling, which was above its 50-day and 20-day moving averages. The stock has five “buy” recommendations, ten “hold” recommendations, and no “sell” recommendations.
Other top stocks in the iShares MSCI United Kingdom ETF were Glencore (GLEN) and Randgold Resources (RRS). The stocks returned 4.37% and 4.22%, respectively, on October 2, 2015. These stocks gained following a rise in the prices of precious metals.
Energy sector upbeat
The rise in oil prices benefited the energy sector. Stocks of Royal Dutch Shell (RDS.A) (RDS.B), and BP (BP) yielded 1.32%, 1.31%, and 2.69%, respectively, on October 2.
The stocks of Royal Dutch Shell (RDS.A) (RDS.B) traded at 1,608 pounds sterling and 1,622 pounds sterling, respectively, on the day, and both stocks were above their respective 20-day moving averages. Both the stocks are rated as Aa1 by Moody’s and AA- by Standard & Poor’s (or S&P).
BP also crossed its 20-day moving average and traded at 351.45 pounds sterling on the London Stock Exchange. The stock is rated “stable” by S&P and A2 by Moody’s.
Stocks at the bottom
Stocks at the bottom of the the iShares MSCI United Kingdom ETF were Experian (EXPN), Wolseley (WOS), and Petrofac (PFC). The stocks yielded -3.81%, -2.78%, and -1.98%, respectively, on October 2, 2015. The stocks traded well below their analyst price targets.
Petrofac, which is in oil and gas equipment and services, is rated Baa3 and BBB by Moody’s and S&P, respectively.
For a detailed read about the events in the crude oil market, visit our series Crude Oil Market: Will Catalysts Support or Destroy Crude Oil Prices?