Mining companies were stuck in the red on Monday, pushed into decline by concerns over a stricter mortgage policy introduced in China in an effort to curb soaring property prices.

This in turn could mean demand for building materials could be weakened.

Risk appetite was also dampened by the news construction output declined for the fourth month in a row in February.

The index dropped to 46.8 from 48.7 in January, and significantly below consensus expectations of 49.0. Anything below 50 indicates a contraction.

Adding to the negative sentiment, Nomura has lowered its target price on Anglo American to 1,700p from 1,800p and downgraded the stock to reduce from neutral.

Markets seem to be getting ahead of themselves with regards to Anglo, analysts at Nomura wrote this morning. In particular, optimism regarding the incoming new Chief Executive Officer, Mark Cutifani, on April 3rd, has seen the shares rise to the point where investors are now paying approximately 14 times the company's estimated earnings for this coming year, versus 13 times for rival BHP Billiton or nine times for Rio Tinto.


Top performing sectors so far today
Automobiles & Parts 6,481.12 +2.90%
Tobacco 39,377.56 +1.19%
Gas, Water & Multiutilities 5,562.09 +1.11%
Insurance (non-life) 1,739.15 +0.49%
Electricity 9,307.24 +0.48%

Bottom performing sectors so far today
Industrial Metals & Mining 2,588.31 -3.25%
Mining 18,838.87 -2.62%
Industrial Transportation 2,677.10 -2.12%
Banks 4,951.93 -1.84%
General Retailers 2,015.53 -1.76%

Related share prices