Highlands Natural Resources Plc (LON:HNR) was having a fling on Monday, up 43.4% at 59.5p after agreeing a licence with an oilfield services provider in the US and Canada.
The oil & gas company has signed a deal with US group Calfrac Well Services under which Calfrac will use HNR’s re-fracking technology for its commercial fracking operations in seven US states.
The re-fracking technology is owned by Diversion Technologies LLC, in which HNR has a 75% stake.
HNR led small-caps higher, with the FTSE AIM 100 rising 22.36 points and the AIM All-Share gaining 3.4 points.
But their top-flight sibling descended further into negative territory by lunchtime as crude oil and gold prices fell. The FTSE 100 Index was 18 points off at 6138.
Miners dragged down the top flight as gold fell 0.4% to US$1247.4 an ounce on heightened expectations of a rate hike by the US Federal Reserve in June.
Base metals fell as iron ore tumbled 6% amidst a rise in port inventories.
A barrel of Brent Crude Oil fell 1.6% to US$47.9 as Canada started resuming operations after wildfires and Iran shunned an output freeze.
Investors took a shine to Mariana Resources PLC (LON:MARL) as the miner reported Further High Grade Intercepts from Resource Extension and
Exploration Drilling at the Hot Maden Gold-Copper Project, NE Turkey. Shares in the group lifted 10.4% to 3.45p.
Union Jack Oil PLC (LON:UJO) was 9.7% slicker at 0.17p on news that it had bought a 7.5% stake in PEDL143 in the Weald Basin in southern England, containing the drill-ready Holmwood prospect.
At the other end of the scale, 3D imaging firm DDD Group PLC (LON:DDD) reversed 67.2% to 0.5p as it said it was leaving AIM.
Sovereign Mines of Africa PLC (LON:SMA) fell 21.5% to 0.26p as the Guinea-focused gold miner wrote down its assets in full after failing to find a strategic partner for its Mandiana scheme.
The biggest top-flight riser was Royal Mail PLC (LON:RMG) at 510p, up around 3.7%. The bigger loser was satellite group Inmarsat Plc (LON:ISAT), down about 3.8% to 726.5p, followed by three miners.
PM David Cameron and Chancellor George Osborne warned this morning of the possibility of a recession if Britain was to leave the EU.
Ryanair Holdings PLC (LON:RYA) chief executive Michael O'Leary also warned that an EU exit would damage the UK economy for two to three years as the budget airline posted higher profits. Ryanair’s shares climbed 0.75% to €13.47.
Meanwhile, probes into the collapse of retail chain BHS, which was sold by Arcadia boss Philip Green with a large pension deficit, start today.
Preview 6.53am
The FTSE 100 looks set to start the week in positive territory with investors having reconciled themselves to an imminent hike to US interest rates.
The index of blue chip shares is expected to open 12 points to the good 6,168.32, building on Friday’s hundred point-plus rally.
Overnight in Asia the picture was mixed with the Nikkei 225 down around 0.5% as the Yen strengthened, hitting the country’s exporters.
The Chinese stock indices fared a little better with Shanghai a 0.6% gain and Hong Kong’s Hang Seng up 0.3%.
An air of relative calm has returned to world equity markets after a topsy turvey week, according to Michael Hewson, analyst at CMC Markets.
“The levels of uncertainty that appear to have plagued investors for several weeks now appear to show no signs of abating as speculation about when the US Federal Reserve might increase interest rates takes over as the main preoccupation for a lot of investors after a series of hawkish interventions last week,” he said.
Back here at home it is a big week for the retailers with Marks & Spencer, B&Q owner Kingfisherand Dixons Carphone all updating investors on their recent financial performance.
Biggies Severn Trent, Daily Mail & General Trust and Tate & Lyle are also slated to report.
*Brent trading 14 cents lower at US$48.58 a barrel.
*Gold US$2.40 higher at US$1255.30 per ounce.
*Bids and rumours: The Public Investment Corporation, South Africa’s powerful state-owned pension fund Manager, is considering putting together a consortium of black investors to take a controlling stake in Barclays Africa.
Main City Headlines
*BT will begin searching for a successor to long-serving chairman Sir Mike Rake at the end of this year – FT.
*The fate of more than 11,000 British steelworkers is hanging in the balance as potential buyers of Tata Steel’s troubled UK business put the final touches to bids ahead of a deadline – Times.