Wednesday April 23, 01:08 PM
Sector movers: Housebuilders retreat
LONDON (ShareCast) - Housebuilders are in full retreat after mortgage lending tumbled to its lowest monthly figure since 1997 as banks run out of money to lend to prospective home buyers. Just 35,417 new mortgages were approved for house purchases
in March, 18% lower than in February, the British Bankers' Association (BBA) said. It (Frankfurt: A0MLX5 - news) is the worst reading since the BBA started compiling approvals data. The total value of the mortgages approved for house purchase, which now make up just 27% of all new home loans being approved, was 44% lower than in March last year. Including re-mortgages and equity withdrawal, new mortgages were 15% down on a year ago at 129,300. Further bad news came in the form of the minutes from the Bank of England's last meeting that showed two MPC (A050540.KQ - news) members wanted no cut in the base rate at the last meeting. Six MPC members voted in favour of the quarter point cut and one wanted a full half-point reduction. Platinum miner Lonmin (LSE: LMI.L - news) said current market expectations of full year production of around 775,000 ounces of platinum are in line with the company's own estimates. The market was heartened by Lonmin sticking to its production forecasts, though the company stressed that the production guidance takes no account of any possible deterioration in the power supply situation. The company is in talks with power generator Eskom about raising its power capacity from 90% to 95%. Rival miner Anglo American (LSE: AAL.L - news) has said that it expects the power crisis to drastically cut its platinum production this year, with the forecast output down by 150,000 ounces. Anglo American's chief executive, Cynthia Carroll, described the cut as "very, very significant." Lonmin saw production levels dip in the first quarter of 2008 as a result of the Eskom power crisis and a number of safety related shutdowns. Metallurgical production in the three months to 31 March 2008 totalled 128,124 ounces of platinum and 257,816 ounces of platinum group metals (PGM). Sales of platinum totalled 143,551 ounces while the company sold 282,659 ounces of PGMs. Both output and sales were restricted by the Number 1 furnace inspection which was performed ahead of schedule as a result of the Eskom power crisis. Total tonnage mined in the first three months of 2008 was down 16% on the levels seen in the corresponding period of 2007, at 2.9m tonnes. Mining operations were significantly affected by the four day Eskom power outage at the end of January, as well as a number of shut-downs necessitated by safety requirements. The group also suffered a high level of absenteeism by key staff around Christmas and Easter. Top performing sectors so far today
Oil & Gas Producers 8,300.20 +1.36%
Electronic & Electrical Equipment 1,995.50 +1.20%
Mining 27,997.30 +1.18%
Industrial Metals 9,919.50 +1.07%
Oil Equipment Services & Distribution 17,333.70 +0.99% Bottom performing sectors so far today
Automobiles & Parts 4,418.50 -5.64%
Travel & Leisure 4,493.80 -2.83%
Household Goods 6,181.00 -2.81%
Chemicals 5,287.90 -2.79%
Banks 7,851.70 -2.50%
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