Tate in a state
Gold stocks are on the march following the election of Donald Trump with the weakness of the dollar and the metal’s safe haven status sending the price soaring. The knock-on impact for the miners was positive with Fresnillo (LON:FRES) leading the way with a 10% rise. The Mexico-focused group was also one of the few local beneficiaries of a weaker peso. Among the smaller caps Pan African
Resources (LON:PAF) and Highland Gold (LON:HGM) were also in demand.
Tate & Lyle (LON:TATE), meanwhile, is negatively exposed to the Mexican currency as well as the declining dollar. As a result the shares nose-dived 11%.
The market really didn’t like the half-term update from J Sainsbury plc, down 6% after the latest figures revealed its core grocery business was under attack from a revitalised Tesco PLC (LON:TSCO).
11.30am....Mosman on the march
Mosman Oil And Gas Ltd (LON:MSMN), up 127% to 1.42p. Investors were buoyed after Mosman bought a producing oil field in Texas.
Mosman told investors that it paid £786,000 for the majority stake in the Pine Mills oil field in Wood County.
The oil and gas explorer will use existing cash resources to fund the purchase, which will still leave it with £1.23mln in the bank.
As part of the deal, Mosman will also take control of the field’s operator – Buccaneer Operating – as well as 12 acres of freehold land and a workover rig.
Elswhere, Premier African Minerals Ltd (LON:PREM) was down 9% to 0.34p, despite this morning’s news that it had recorded significant lithium grades from its latest drilling at its Zulu project in Zimbabwe.
Diamondcorp Plc (LON:DCP), down 8% to 2.1p. The diamond miner has drawn down a further £300,000 from its financing facility with Rasmala.
Rasmala agreed to provide £0.7mln in short-term funds last month through a Shariah-compliant secured convertible facility.
The £300,000 is the second tranche of that money.
Elsewhere, UK pharmaceutical giants GlaxoSmithKline plc (LON:GSK) and AstraZeneca PLC (LON:AZN) were both up on the news of a Trump victory in the US election.
Pharma stocks had fallen in recent weeks on fears that Clinton – who had looked a likely victor – would hammer drug companies and force them to lower prices.