Ascent Resources Plc (LON:AST) shares topped the small cap leader boards, rising 70% in early deals, amid news of a possible merger with Ukraine focussed Cadogan Petroleum.
A stock market statement confirmed that Cadogan had made a ‘highly preliminary’ merger approach, following an earlier sharp rise in Ascent’s price ahead of the Easter break.
Changing hands at 3.43p Ascent, a struggling Europe focussed shale and ‘tight’ gas group, is now up more than 250% in the two trading days since March 23.
African Potash (LON:AFPO) was also a feature of early trade, as it reassured investors over a delayed payment under a Zambian contract whilst reporting on a period of transformation for the AIM quoted group which has morphed from a mining exploration and development firm to a supplier of fertiliser.
Crucial to this change has been a deal with African free trading group COMESA. It expects to supply 500,000 tonnes a year to member countries and signed a number of deals 2015. The first revenues – a total of US$59,000 – came through in the six months to December 31.
Shares in the fertiliser group were down about 16% at 1.43p. Analysts, meanwhile, point to positivity with expectations of significantly higher revenues for African Potash in the second half of 2016.
More broadly, the small cap market was edging higher.
The FTSE AIM 100 was up 0.12% at 3,329, while the FTSE Small Cap index gained 0.3% to 4,510.
Gains were slightly more pronounced in London’s blue chip market, however, with the FTSE 100 up 0.5% at 6,136 and the FTSE 350 up 0.45% at 3,420.
Among the blue chips, BAE Systems (LON:BA.) was in focus as it secured a £300mln contract from the Ministry of Defence, which sees the engineering and aerospace group support the Hawk fighter pilot training aircraft for five more years.
The contract is said to safeguard some 675 jobs at BAE and partner Babcock International (LON:BA.).
AG Barr (LON:BA.), meanwhile, was also a notable highlight in an otherwise quiet morning for big company news – as the Irn Bru maker released its annual results in the wake of the UK government’s unveiling of the ‘sugar tax’ on soft drinks.
The company highlighted that details of the proposed tax would be consulted upon, but said it expects at least two-thirds of its portfolio to be ‘lower or no sugar’ by the time that the levy is introduced in April 2018.
Hospital group Mediclinic International (LON:MDC), up 2.4%, was the FTSE 100’s top riser at 875p while it was followed by RSA Insurance Group (LON:RSA), EasyJet and Primark owner Associated British Food (LON:ABF) all of which gained just more than 2%.
Mining group’s comprised the fallers board almost entirely, with Anglo American (LON:AAL) down about 4% to 480p.
Rio Tinto (LON:RIO), BHP Billiton (LON:BLT), Glencore (LON:GLEN) and Antofagasta (LON:ANTO) all lost more than 3%.