Daily Mail: Crude puts skids under Footsie: "RECORD oil prices cast a dark shadow over friendless stockmarkets.": “Shell edged up 1 1/2p to 408 3/4p, despite losing up to 40,000 barrels per day of oil output in Nigeria.” (ShellNews.net)
Geoff Foster,
28 September 2004
RECORD oil prices cast a dark shadow over friendless stockmarkets. The Footsie was dragged 36.9 points lower to 4,541.2 as the price of Brent crude for November delivery jumped to a record $46.25 a barrel.
US refiners are struggling to build stockpiles after Hurricane Ivan and there are fears over escalating tensions in oil-rich Nigeria, where militants are fighting government troops.
Added to growing concerns about the effect a high oil price could have on economic growth, it made for a disappointing start to the week.
Wall Street didn't do London any favours either, trading below 10,000 (down 48 points) in early dealings. Brokers in New York have November's presidential elections as well as the oil price to fret about.
BP closed only 4p off at 532p helped by the purchase of a further 9.6m of its own shares at prices between 529p and 535p a share. Shell edged up 1 1/2p to 408 3/4p, despite losing up to 40,000 barrels per day of oil output in Nigeria.
Minnow explorer Petrel Resources, the only quoted company drilling in Iraq, gushed 16p to 66p. The Iraqi Ministry of Oil, has in recent days, invited Petrel's management for 'an urgent discussion to finalise all technical and commercial matters' in relation to the three tenders submitted between April and June of this year.
Director buying in the wake of the half-year figures helped Regal Petroleum rally to close at 338 1/2p. Colourful chairman Frank Timis put his money where his mouth is, acquiring a further 100,000 shares at 340p taking his shareholding to 7.6%.
Regal reported a modest interim loss of £1.4m, similar to the loss incurred for the full year 2003. Broker Evolution says production in Greece is still set to rise by year- end, but more likely to reach around 6,000 to 7,000 barrels per day gross* rather than the 12,000 target previously indicated. However, it says drilling in the next six months holds substantial reserve upside in Greece and Romania. Mexican cement giant Cemex's surprise £2.3bn knock-out cash bid for RMC (251p up at 850p) encouraged punters to mix it in the building sector. Aggregate Industries, which recently said it was not interested in launching a counter-bid for Ennstone ( 1/2p easier at 36 1/4p), jumped 5p to 94p on hefty turnover of 33.8m. Hanson advanced 12 3/4p to 403p.
AMEC touched 302p and closed 3 1/4p better at 299p. Speculation is rife that leading AMEC shareholders led by hedge fund Toscafund (9.5%) two weeks ago rejected an offer of 380p a share in cash for their stock. Undeterred, US engineering and construction giant Fluor is now said to be ready to go public with a 435p per share cash offer.
Struggling J Sainsbury advanced to 270p on early speculative support which followed reports of a possible bid from private equity firm Permira. But after sector analysts poohpoohed the idea, the price drifted to finish 3p off at 259 3/4p.
Lazard's Phil Dorgan would be very surprised if a bid emerged at a premium to the current share price because he expects a serious profit warning on October 19, when second- quarter numbers and the business review is announced.
BSkyB dipped 15 1/4p to 485 3/4p amid reports broker CSFB is displeased with its current promotion of free installation on Sky Digital products costing £19.50 and above.
Aim-listed* Pentagon Protection eased 1/4p to 7 7/8p following a placing* by broker Seymour Pierce of 9.6m shares at 6 1/4p to new and old institutional investors.
Greystar Resources jumped 14p to 111 1/2p after discovering new highgrade gold veins at its Angostura gold and silver deposit in north eastern Columbia.
Vehicle parts group Toad closed 4 1/4p off at 11 1/4p following a warning that full-year profits will fall short of expectations
http://www.thisismoney.com/20040928/nm82939.html