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  BP, Cairn, Tullow and BG climb as oil inches higher, FTSE 100 adds 0.3%
Reported by Proactive Investors on Friday, 13 November 2009 (on November 13, 2009)
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Overview: the FTSE 100 managed to turn early losses into gains, climbing 0.3% by mid afternoon, helped by gains in the commercial property and energy sectors, while miners continued sliding on lower metal prices.
Liberty International (LSE: LII) was sitting atop the leaderboard by midday with a 3.5% gain, while fellow blue chip property companies Hammerson (LSE: HMSO) and British Land (LSE: BLND) followed with gains of over 1.5%. Oil companies Cairn Energy (LSE: CNE) and BG Group (LSE: BG) also made it to the top, advancing 2.5% and 2% respectively, while sector peer Tullow Oil (LSE: TLW) rose 1.5%.
British Airways (LSE: BAY) was in demand for the second day running as merger talks with Spanish counterpart Iberia yielded results today with the two parties agreeing to a £4.3 billion combination to set up Europe’s third largest airline.
InterContinental Hotels Group (LSE: IHG) made it to the top three with a 3.3% climb.
The top fallers included packaging group Rexam (LSE: REX), which lost 3.2% after its CEO announced his resignation. Engineering services group AMEC (LSE: AMEC) and stock broker ICAP (LSE: IAP) followed with losses of over 2.5%.
Stock futures rose this morning, pointing to a higher start on Wall Street ahead of updates on consumer sentiment, import prices and the trade gap that are due to be released today.
Commodities
Oil prices partially recovered from an earlier downfall in the morning with December Brent Crude inching up to US$76.73/barrel and US light, sweet crude for December delivery rising to US$77.43/barrel.
With the exception of Shell (LSE: RDSB), which posted a small loss, major oil stocks were on the rise. Another supermajor BP (LSE: BP) rose marginally, as did Petrofac (LSE: PFC). Tullow Oil (LSE: TLW) and BG Group (LSE: BG) advanced 1.3% and 1.7%, while Cairn Energy (:SE CNE) was in the lead with a 3% climb.
Midcaps were mixed as Dragon Oil (LSE: DGO) rose marginally, while Heritage Oil (LSE: HOIL) lost 1.3% and Dana Petroleum (LSE: DNX) added 3.3%.
Iraq and Algeria operating Gulf Keystone Petroleum (AIM: GKP) was among the top performers in the sector, climbing 3.6%, while most other juniors declined.
Atlantic Canada operating oil and gas group Enegi Oil (AIM: ENEG) led the fallers with a 6% slip, while energy investor Xtract Energy PLC (AIM: XTR) followed with a loss of lamost 5%. North American based explorer Nighthawk Energy (AIM: HAWK) and Mongolia-focused Petro Matad Ltd (AIM: MATD) shed more than 3% and Peru, Colombia and Cuba operating oil and gas explorer and producer Gold Oil (LSE: GOO) was down 3%.
Gold and silver decline
Precious metals also were on the rise following the overnight fall. Gold climbed to US$1,108/oz, silver improved to US$17.30/oz and platinum advanced to US$1,361/oz.
Most blue chip miners were in decline. In the FTSE 100, gold producer Randgold Resources (LSE: RRS), silver miner Fresnillo (LSE: FRES) and platinum miner Lonmin (LSE: LMI) all lost less than 1%.
Specialty chemicals firm Johnson Matthey (LSE: JMAT) outperformed fello blue chips, adding almost 1%.
Midcap Aquarius Platinum (LSE: AQP) also did well, tacking on 1.6%. However, fellow FTSE 250 constituents gold miner Petropavlovsk (LSE: POG) and silver producer Hochschild Mining (LSE: HOC) fell, shedding 2.7% and less than 1% respectively.
South Africa and Botswana operating diamond miner Firestone Diamonds (AIM: FDI), which released its full year results today, was one of the top performers among the small caps today with a 5% advance.
Canada based junior gold developer Rambler Metals and Mining Plc (AIM: RMM), UK-registered China operating copper and gold miner Central China Goldfields (AIM: GGG), Africa operating gold miner GMA Resources (AIM: GMA), Philippines focused Metals Exploration (AIM: MML) and Western Australia operating Norseman Gold (AIM: NGL) all gained more than 3%.
Kazakhstan operating gold producer and copper developer Frontier Mining (AIM: FML) and Turkey focused gold miner Ariana Resources (AIM: AAU) headed in the opposite direction, sliding 7% and 6.5% respectively. Brazil focused gold miner Horizonte Minerals (AIM: HZM) followed with a 5% decline, while commodity asset development company Mercator Gold (AIM: MCR) lost 4%.
Miners fall as copper and nickel stay low
Base metals were mixed as while copper inched higher to US$2.96/lb, nickel and zinc declined to US$7.26/lb and US$0.97/lb respectively.
Anglo American (LSE: AAL) and Rio Tinto (LSE: RIO) outperformed the rest of the sector, posting small gains. BHP Billiton (LSE: BLT) was flat.
Kazakhmys (LSE: KAZ) and Xstrata (LSE: XTA) retreated 1.5%, while Antofagasta (LSE: ANTO) lost 2%. Eurasian Natural Resources (LSE: ENRC) and Vedanta Resources (LSE: VED) were at the bottom of the pile with losses of 2.5%.
London's only listed pure iron ore producer and FTSE 250 constituent, Ferrexpo (LSE: FXPO) performed well, staying just above the opening level.
Tantalum concentrate supplier with assets in Mozambique Noventa (AIM: NVTA) led the small caps with a 7% climb. Strategic Natural Resources PLC (AIM: SNRP) and Tunisia focused metal miner Maghreb Minerals (AIM: MMS) followed, climbing 5%.
Zinc miner Connemara Mining (AIM: CON) emerged as the leading faller with a 10% dip. Philippines operating nickel miner Rusina Mining (ASX: RML; AIM: RMLA) was down 3%.
Banks, insurance, private equity
HSBC (LSE: HSBA) was the top performer in the banking sector with a 1.3% gain, while all of its peers declined. Bailed out banks Lloyds (LSE: LLOY) and Royal Bank of Scotland (LSE: RBS) posted small losses, as did Barclays (LSE: BARC) and Standard Chartered (LSE: STAN).
Insurance stocks declined today with the exception of Prudential (LSE: PRU), which climbed 1.5% and car insurer Admiral Group (LSE: ADM), which rose marginally.
RSA Insurance Group (LSE: RSA) declined nearly 1%, while Standard Life (LSE: SL), Old Mutual (LSE: OML), Legal & General (LSE: LGEN) and Aviva (LSE: AV) posted small losses.
Private equity group 3i (LSE: III) declined marginally.
Large and Mid Cap News
The boards of British Airways (LSE: BAY) and Spain's Iberia (IBEX: IBLA) agreed a binding memorandum of understanding (MoU) setting out the terms for a merger. According to Iberia the merger would create ‘a real global airline’ and that the companies are ‘laying the foundations’ for one of the most important airlines in the world.
BG Group (LSE: BG) said a hydrocarbon find at a new well in the deep-water Santos Basin offshore Brazi, Tupi North-East, has reinforced the potential of its exploration projects in the basin. The Tupi North-East is located in the Tupi evaluation area in a water depth of 2,115 metres.
Balfour Beatty (LSE: BBY) announced is to acquire Texas based SpawMaxwell Co from its management for up to US$25 million in cash. SpawMaxwell is one of the largest contractors in Houston, Texas. The company also has offices in Austin and Dallas and has delivered more than 40 million square feet of interior construction projects.
Interim results from consumer packaging company Rexam (LSE: REX) didn’t bring much cheer this morning. The results were in-line with expectations, but only thanks to cost reduction initiatives and positive foreign exchange translations, which offset weaker volumes. The interim results covered to the period from July to date.
Impala Platinum (LSE: IPLA, JSE: IMP) reported higher production from its mines in Zimbabwe and increased deliveries to Impala Refining Services (IRS), whose refined platinum production jumped 59% compared to the previous quarter.
Small Cap News
South Africa and Botswana operating diamond miner Firestone Diamonds (AIM: FDI) reported higher revenues for the full year, which saw a number of operational successes, and said it would now concentrate on developing a mining operation on the BK11 kimberlite and finalizing the contract with Debswana for the design, construction and operation of a tailings plant at the Jwaneng mine.
Shares in Red24 (AIM: REDT) were in demand this morning after the security company announced contract wins with two major insurance underwriters in the US to provide special risk consulting services.
Australian-listed resource company Gippsland (ASX: GIP) holds out big hopes for the Abu Dabbab and Nuweibi tantalum-tin metal-feldspar projects, according to a report to the Australian Securities Exchange.
Electrical machines and power electronics company Turbo Power Systems (AIM, TSX: TPS) reported improvements in its financial performance in the third quarter as revenues rose and net loss narrowed, expecting the business to strengthen as production in its target markets increased.
China’s largest orange plantation owner Asian Citrus Holdings Limited (AIM: ACHL) said its application for listing on the Hong Kong Stock Exchange was considered by the listing committee, and shares were expected to be admitted to trading in two weeks.
There was a further shake-up among Fusion IP’s (AIM: FIP) major shareholders yesterday. Institutional investors, Invesco Limited and Legal and General Investment Management both increased their holdings, meanwhile Brookwell Limited exited its position in the University IP commercialisation company.
African-focused Shield Mining (ASX: SHX) has launched a new drilling programme at the Tijirit Gold Project in Mauritania, where significant gold intersections were encountered earlier this year. The project is adjacent to Red Back Mining's (AIM: RBI) Tasiast gold mine.
Shares in the Irish diamond miner African Diamonds (AIM: AFD) rise 8.9% as news emerges that De Beers is to sell its entire 71% stake in the joint AK6 Botswana diamond project. The company will now be able to move forward with construction on the site. Mining operations are expected to begin in early 2012.
Links: Full news story
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