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U.K. Stocks Decline as Ophir Energy Retreats

Discussion in 'International Forum' started by Neiwa, Sep 17, 2012.

  1. Neiwa

    Neiwa JF-Expert Member

    #1
    Sep 17, 2012
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    September 17, 2012 10:39 AM EDT


    U.K. stocks declined, following atwo-day rally, on deepening concern that the economic slowdownin China will worsen.

    Ophir Energy Plc (OPHR) tumbled 6.2 percent after newspapersreported that the board of Tanzania Petroleum Development Corp.has to review its agreements with foreign energy companies.Aquarius Platinum Ltd. (AQP) surged 8.3 percent after saying mining-resumed at its Kroondal facility.

    The FTSE 100 Index (UKX) retreated 0.3 percent to 5,897.56 at3:35 p.m. in London. The equity benchmark has still rallied 12percent from this year's low on June 1 as European Central BankPresident Mario Draghi pledged to do everything to protect theeuro. The broader FTSE All-Share Index also slipped 0.3 percenttoday, while Ireland's ISEQ Index lost 0.7 percent.
    U.K. stocks jumped last week as the Federal Reservecommitted itself to buy bonds until the U.S. unemployment ratedrops and Germany's highest constitutional court permitted thegovernment to approve the euro area's permanent bailout fund.

    "The rally is being supported purely by central bankintervention, making it completely unsustainable," Craig Erlam,a market analyst at Alpari Research in London, wrote in a note."This week is likely to be much quieter, so we could see stockscontinue to make small losses."

    Citigroup Inc. cut its growth forecast for the Chineseeconomy to 7.6 percent in 2013 from 8 percent because ofweakening external demand. Separately, the official Xinhua NewsAgency cited Lu Zhengwei, chief economist at Industrial BankCo., as saying that China must exercise caution with itsmonetary policy. Zhengwei said the Fed's third round ofquantitative easing increases pressure to control inflation.

    Review Agreements

    Ophir Energy, an oil and gas explorer, tumbled 6.2 percentto 601 pence. Minister of Energy and Mines Sospeter Muhongoordered the board of Tanzania Petroleum to review all of itsagreements with energy companies, Tanzania's Daily News and theGuardian on Sunday reported.

    In a statement, Ophir said it "is fully compliant from anoperational and regulatory perspective in all of its Tanzanianlicenses. Ophir welcomes the review process and, with therecommencement of drilling in early October, looks forward toanother high-impact drilling program."

    Aquarius Platinum, a platinum producer in South Africa,surged 8.3 percent to 52.9 pence. The company said miningresumed this morning at its Kroondal facility. Aquariussuspended production on Sept. 14 following protests.

    Vodafone, BT

    Vodafone Group Plc (VOD), which has resisted setting aside moneyfor a $2.2 billion tax bill in India, fell 0.9 percent to 174.2pence after saying it may make a provision to cover legal risks. BT Group Plc (BT/A) slid 1.6 percent to 229.2 pence. Exane BNPParibas cut its recommendation on the shares to neutral fromoutperform. The brokerage said that the U.K.'s largest fixed-line phone provider will need 3.7 million customers to pay 10pounds a month to cover the 280 million-pound ($455 million)charge for televising football plus production costs.

    Imagination Technologies Group Plc (IMG) lost 3.5 percent to569.5 pence. UBS cut the shares to sell from neutral. Petropavlovsk Plc (POG) increased 3.2 percent to 447.7 penceafter Citigroup Inc. raised the gold mining company to buy fromneutral. The Fed's quantitative-easing program will probablysupport gold and silver prices, the analysts wrote in a note.

    Unilever Plc (ULVR) added 1.2 percent to 2,272 pence. UBS AGraised its recommendation on the maker of Bertolli olive oil tobuy from neutral. The company's portfolio may become morefocused, increasing growth in food sales to 5 percent a year by2015, analysts wrote in a report. The volume of shares changing hands on the FTSE 100 was 2.8percent lower than the average of the last 30 days, according todata compiled by Bloomberg.


    Source: Bloomberg Bussinessweek.

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  2. Mtego wa Noti

    Mtego wa Noti JF-Expert Member

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    Sep 17, 2012
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    it is too technical for non economists like us..ngoja nipite nikapate ulanzi wangu...ntakuja baadaye.
     
  3. Neiwa

    Neiwa JF-Expert Member

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    Sep 17, 2012
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    Come on man! Acha uvivu, if you have access and can understand the language relish in the content hata kama you wont like the taste, hata upendezi kutoa comments za ntakuja baadaye...
     
  4. Mtego wa Noti

    Mtego wa Noti JF-Expert Member

    #4
    Sep 17, 2012
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    u think it is uvivu? it is just the technical part that is in the thread. u have to simlify it for every individual to grasp some knowledge on what is perpetuating in the ground rather than just copying the news from the magazines. U must put your take at the end of the copied post.
     
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