The oil equipment, services and distribution sector was one of the best performing categories on Tuesday afternoon with Petrofac and AMEC among the stocks providing a lift.
Petrofac, which specialises in the design of hydrocarbon processing plants, was up over 1% after Liberum Capital upgraded its rating on the stock to ‘buy’. AMEC, the engineering consultancy and project management group, was also on the up after Nomura named it as its top pick in the European oilfield services (OFS) sector.
The broker hosted the Global OFS Conference in London last week and said that ‘we came away incrementally more positive on the outlook for engineering-based companies well placed to benefit from global tightness in highly qualified project managers.’
Also providing a boost to the sector today could have been the surge in crude prices on the back of hopes that central banks across the globe will ease monetary policy. Brent futures were trading $2.82 higher (+2.9%) at $100.16 this afternoon.
Sector peers Lamprell, Hunting and Wood Group were also making strong gains.
Top performing sectors so far today
Forestry & Paper 6,075.05 +2.55%
Oil Equipment, Services & Distribution 23,020.22 +2.16%
Mining 18,001.30 +1.89%
Electronic & Electrical Equipment 3,287.85 +1.60%
Industrial Engineering 7,005.58 +1.58%
Bottom performing sectors so far today
Industrial Transportation 2,338.30 -1.08%
Gas, Water & Multiutilities 5,128.61 -0.85%
Electricity 8,779.39 -0.73%
Industrial Metals & Mining 2,840.94 -0.66%
General Retailers 1,703.09 -0.60%