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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Investments and investor services

Oil majors drag on shares as crude prices flounder

Falling gold prices are taking the shine off miners

London shares trod water in the final session of the week as oil majors sprang a leak on the back of falling crude prices.

The FTSE 100 Index was just 7 points up at 6,661 at lunchtime in London. Germany's Dax was four points up but France's CAC-40 gained nearly 22 points.

Oil prices were on the slide again, with US light crude dropping 1.5% to US$48.45 a barrel and Brent off 1.6% at US$55.27.

BP (LON:BP.) fell 1.5p to 399.45p, Royal Dutch Shell (LON:RDSB) shed 12p to 1,786p and BG Group (LON:BG.) also deflated 7.5p to 1,046p.

Business survey data from economic researchers Markit showed the pace of Eurozone economic growth slowing slightly in July.

Still, the rate of expansion remained one of the strongest seen in the past four years.

By country, output growth slowed in Germany, albeit merely to a two-month low, while a three-month low was seen in France.

But there was good news elsewhere in the region as expansion rates accelerated, pushing growth ahead of France and Germany although failing to match peaks earlier in the year.

Gold prices continued to fall, down 1.5% at US$1,077 an ounce, hitting shares in Randgold Resources (LON:RRS) by 32p to 3,792p.

Anglo American (LON:AAL) ticked up 9.6p to 816p after the mining giant said currency weakness and cost savings had partly offset a a 36% fall in half-year earnings due to lower commodity prices.

Publishing group Pearson (LON:PSON), which on Thursday announced the sale of the FT to Nikkei for £844mln, pared early gains to fall a penny to 1,233p after a 1% sales rise to £2.2bn on growth in North America, Brazil and China.

Bookie Ladbrokes (LON:LAD) lost 3.6p to 124.7p as it confirmed plans for a merger with rival Gala Coral.

Power generator rental group Aggreko (LON:AGK) plunged 170p or nearly 12% to 1260p as it warned on first half and annual profits.

It blamed security problems in Yemen and another slowdown in its North American oil & gas-related business.

Guinness and Smirnoff vodka group Diageo (LON:DGE) reversed 39p to 1,868p as it emerged that US financial regulators were probing its US distribution practices.

Diageo said it was working with the Securities & Exchange Commission to provide details of its distribution methods after the Wall Street Journal reported that the SEC was checking whether the company shipped excess inventory to boost results.

Online supermarket delivery group Ocado (LON:OCDO) drifted 9.6p to 413.6p amid speculation that online retailer Amazon was planning to launch a UK version of its Amazon Fresh grocery delivery service later this year.

Amazon also unveiled better-than-expected results, pushing its market value above that of Asda owner Walmart.

Elsewhere, miner Lonmin (LON:LMI) subsided 9.1p to 66.4p as it said it was studying funding options to protect itself against falling commodity prices, with some market-watchers speculating about a rights issue.

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