Don’t tell Goldman Sachs, but, mining stocks were the top performer in the small cap market so far today.
The US investment bank today issued a gloomy note on the mining sector’s prospects, off the back of Monday sharp rally in London’s blue-chip miners.
Better metal prices provided the impetus for the majors yesterday, and AIM’s risers screen this morning showed signs of a trickle down.
Zanaga Iron Ore (LON:ZIOC), up 1.38p or 65% to 3.5p, was AIM’s biggest riser by lunchtime.
And it was followed by a spattering of other junior miners. Kolar Gold Limited (LON:KGLD) gained 40% to 1.27p. And, just before midday, told investors it knew no reason for the share price movement.
Ferrum Cresent Limited (LON:FCR) rose 29% to 0.18p, Golden Saint Resources (LON:GSR) was up 21%.
Strategic Minerals (LON:SML) advanced 19% to 0.15p, Rambler Metals & Mining (LON:RMM) added 15% to 3.75p, while both Metminco (LON:MNC) and Bezant Resources (LON:BZT) were around 13% to the good.
Elsewhere, RapidCloud International Plc was the top performing tech stock on AIM, rising 36% with the news it had partnered with major Chinese e-commerce group Alibaba.
Goldman Sachs’ pessimism and disappointing Chinese stats - showing exports contracted by the biggest margin (a quarter) in nearly seven years during February - wasn’t so easily ignored in London’ main market.
And, having posted strong gains on Monday, Anglo American (LON:AAL) and Glencore (LON:GLEN) both lost more than 8% of their value, and were followed by Rio Tinto (LON:RIO), Antofagasta (LON:ANTO) and BHP Billiton (LON:BLT). Altogether the mining sector made provided five of the FTSE 100’s top six fallers.
WorldPay Group (LON:WPG) was the only non-miner to make to top five biggest losers, as its first financial results since its October stock market float seemingly fell short of expectations. The payment processor fell 7.88% to trade at 268.3p.
The FTSE 100 was down 20 points, 0.35%, at 6,161. Designer brand Burberry Group (LON:BRBY) was the notable bright spot, gaining 6.8% to 1,465p.
In broad terms, AIM followed the blue-chips lower. Standing at 3,284 the FTSE AIM 100 was down 0.3%, with the FTSE AIM All-Share lost 0.2$ to stand at 702.
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Rapidcloud International PLC (LON:RCI) found itself top of the small cap risers this morning on a new partnership with the Chinese giant online retail giant Alibaba
Shares jumped by nearly 40% in early deals after the AIM firm said the deal with AliCloud, Alibaba’s international business and cloud computing arm, opened up RapidCloud to a larger customer base.
It will let RapidCloud offer AliCloud's public cloud infrastructure, consulting, managed services, training and support across its offices in South East Asia, the AIM company said.
RapidCloud’s key products will also be made available to the Chinese e-commerce giant’s customers.
Brammer PLC (LON:BRAM) was going the other way as profits fell by 21% in what it chief executive Ian Fraser described as a tough year especially in the UK and Scandinavia.
Brammer is a supplier of tools to the companies that make things, such as bearings and valves and has already carried out some hefty cost cutting. Shares fell 12% to 192p.
Early doors, all indices in London were in the red, with the blue chip FTSE 100 shedding 66 points to 6,116 while the AIM 100 was off 6 points at 3,288.
Luxury goods Burberry (LON:BRBY) led the blue chip index after the FT reported a mystery bidder was circling. Shares rose 4.6% to 1,434p.
Miners were a weak sector after China revealed that exports contracted by a quarter in February, the sharpest fall in almost seven years.
Goldmans Sachs also issued a gloomy note on the mining sector’s prospects.
Among the blue chips Anglo American (LON:AAL) fell 7% to 580p. Smaller cap copper plays such as SolGold PLC (LON:SOLG) were also affected despite more encouraging drilling results from its Ecuador prospect recently.
Elsewhere, security specialist Westminster Group PLC (LON:WSG) roe 5% to 14p as it agreed terms for a possible new 25-year contract to run security operations at an airport in the Middle East.
Kefi Minerals (LON:KEFI) rose 11% to 0.4p on a upgrade to the economics at its Tulu Kapi gold deposit in Ethiopia.
Going underground would boost the value of the project to US$200mln.