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FTSE 100 recovers losses as oil giants rally

Last updated: 16:31 17 Dec 2014 GMT, First published: 17:31 17 Dec 2014 GMT

sabmiller

A strong showing on US markets and a recovery in the oil price persuaded the Footsie to get its skates on and recover the morning’s losses.

The top-share index finished up five points at 6,336, despite the number of fallers among its constituents outnumbering risers by about three to two.

Russia’s rouble crash to record lows, hurt by sanctions and a slide in oil prices, sparked a rush out of emerging markets.
In response, traders cutt their risk exposure and quickly.

Moves by Russia to defend the currency today enhanced volatility, but seemed to be enough to calm nerves. In particular, the Russian government’s decision to lean on exporters to persuade them not to hoard US dollars encouraged a bit of buying interest in the rouble.

Nevertheless, paper maker Mondi (LON:MNDI), which has significant operations in Russia and across emerging markets, was one of the biggest blue-chip casualties, down 3.2%.

Also getting a kicking was WPP (LON:WPP), the acquisitive advertising agency. The company, which announced Smith & Nephew chairman Roberto Quarta as its chairman-designate, has bought all the shares in IBOPE Participações that it did not already own. IBOPE is Latin America’s leading data investment management group.

WPP also took total control of Millward Brown do Brasil, a market research company in which it had a 55% stake. Shares were down 2.5%.

A rally in oil prices put some oomph into the share prices of oil producers Tullow (LON:TLW), BP (LON:BP.) and BG Group (LON:BG.). The trio occupied the top three places on the Footsie leader board, notching up gains in excess of 3%, as the price of Brent crude moved up and away from the US$60 a barrel level to around US$60.88.

Dixons Carphone (LON:DC.) was another blue-chip winner after maiden interim results for the recently merged group beat expectations..

The electronic goods retailer saw like-for-like revenues rise by 5% alongside a bullish outlook that indicated savings of £80mln would come through earlier than expected.

Shares rose 3.1%.

On AIM, Hightex (LON:HITG) shares shot up 175% after German courts approved bankruptcy protection for its subsidiary, Hightex GmbH.

Solo Oil (LON:SOLO) gained 38% as it received clearance to purchase a stake in Aminex’s (LON:AEX) Kiliwani North Development Licence (KNDL).

Rose Petroleum (LON:ROSE) has started completion work on the State 16-42 Paradox well in Utah, its first step to establishing production in the US.

Shares were 30% higher helped by a very bullish update from house broker finnCap, which raised its price target to a super punchy 12p against a market price of 1.76p.

Shares in Polo Resources (LON:POL) were up by 13% as final results showed a strengthening of its balance sheet and improved cash reserves.

EFK Diagnostics (LON:EKF) wasn’t doing so well as it said final results will fall below expectations. Shares dropped 16% to 22.75p.

Central Rand Gold (LON:CRND) fell 14% to 10.875p on plans to raise £1mln by issuing 5mln new shares at 8.78p each.

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