React Energy (REAC)

 

FTSE falls on miners as crude dips, gold rises

London stocks closed down as crude prices sagged, dragging several big-ticket miners south and pushing safe-haven gold up. Further dead weight was provided by falls in Europe and on Wall St, the latter quivering lower after jobs data.

Predictably volatile Glencore (GLEN) ebbed 5.71% to 132.1p, while Anglo American (AAL) shed 3.12% to 506.2p. Oil stocks were lower, but well behind metals burrowers. Berkeley (BKG) fell 5.16% to 3145p on concerns about a slump in London house prices, with sector pals following.

FTSE 100 closed down 24.74 points, or 0.4%, to 6136.89. FTSE 250 fell 151.88, or 0.9%, to 16,714.2. Both were down from this morning. At 4.36pm, WTI crude was at USD36.99/bbl. Brent was at USD38.89/bbl. Gold traded up at USD1241/oz.

Multiple financials traced Lloyds' (LLOY) fall of 4.77% to 64.83p, and St James's Place (STJ), which dropped 3.37% to 874p. Multiple insurers tapered more than 1%. Overall, about 70 stocks were retreating, roughly 35 by 1% or more and 19 by greater than 2%.

Also down were stocks in the commercial property, beverages and high-street retail sectors, although some of these limped higher. Meantime, supermarkets warmed after M&S, up 3% to 433p, posted total Q4 sales up 1.9%, describing the period as 'mixed'. Sainsbury (SBRY) followed with a gain of 2.68% to 287.2p. Consumer-goods issues followed.

Also progressing were multiple utilities in the wake of United Utilities (UU.), up 1.83% to 946.5p, and Severn Trent (SVT), up 1.44% to 2215.5p, after the US FOMC suggested an April interest rate hike was unlikely. Pharmas gained on hopes of sector M&A activity.

BIGGER MOVERS

Connemara Mining (CON), up 117.36% to 2.88p, said drilling in Inishowen produced a best intercept in the third hole (16-MR-03), below a gold bearing trench, with 3.05m grading at 5.8g/t Au, including a 0.65m interval at 11.31g/t Au and 0.39m at 26.07g/t Au.

REACT Energy (REAC), up 57.89% to 7.5p, noted that a report to Derbyshire County Council's planning committee has recommended permission should be granted to an energy recovery facility at Clay Cross by the company's subsidiary, Clay Cross Biomass.

Kodal Minerals (KOD), lower 43.75% to 0.05p, is seeking shareholder approval for the acquisition of certain gold exploration properties in Mali and Cote d'Ivoire from Taruga Gold.

88Energy (88E) dived 32.13% to 2.2p after flagging errors in yesterday's independent resource report. It had said the 1.4bn-barrel of prospective resources at Project Icewine encompassed just 42% of the acreage, but now claims the report covers the entirety of the acreage.

ECONOMIC NEWS

Stateside, US initial jobless claims fell to 267,000 in the week ended April 2, a fall of 9000 from the previous week's unrevised level of 276,000, US Department of Labor said.

In Europe, Halifax's UK house price index came in at 2.6% for March, considerably ahead of forecasts for a rise of 1.1% and from a previous fall of 1.4%. Elsewhere, France's trade balance for February was -5.177bn euros, versus a forecast -3.8bn euros and from -3.7bn euros.

LONDON HIGHLIGHTS

Solo Oil (SOLO), down 21.13% to 0.28p, has raised GBP0.8m via the issue of 320m new shares at 0.25p each. Proceeds will be deployed in Solo's active investments in Tanzania, and to accelerate ownership of the additional interest in the now-producing Kiliwani North Field.

Belgravium Technologies (BVM), down 17.71% to 2.88p, has posted an after-tax loss of GBP6.3m, from a profit of GBP0.5m in 2014. Ubisense (UBI), down 22.78% to 30.5p, has posted an impairment-driven FY pretax loss of GBP17.3m, from a loss of GBP4.8m. Revenue was GBP21.98m, from GBP35.05m.

Sunrise Resources (SRES) rose 13.04% to 0.13p after it said surface and underground sampling is to continue to the south of existing exploration areas at its Bay State Silver Project in Nevada in preparation for follow-up drilling of earlier high-grade silver drill results.

Centamin (CEY), up 9.33% to 99p, said gold production from the Sukari mine in Egypt totalled 125,268 oz in the three months to end-March, up 6.5% up on the previous quarter and up 15.7% the year. It held FY production guidance at 470,000 oz.

Flybe (FLYB) slid 8.98% to 58.25p after a trading update revealed rising capacity but lower load factor. Independent Resources (IRG) subsidiary Independent Resources Ksar Hadada is now the sole contractor for the Ksar Hadada exploration permit in Tunisia. IRG rose 7.69% to 0.14p.

Mytrah Energy (MYT), up 7.14% to 52.5p, said the Asian Development Bank (ADB) has approved a direct loan facility of up to USD175m to help fund the development of a folio of new wind and solar projects from Mytrah's pipeline.

Mirada (MIRA), down 5.3% to 4.38p, said total FY revenues will be significantly below market expectations albeit ahead of the previous financial year. This was despite the launch of Iris Multiscreen.

Other stocks in the news included Westminster (WSG), Dunelm (DNLM), Frontera Resources (FRR), Victrex (VCT), Imperial Innovations (IVO), Intercede (IGP), Victoria Oil and Gas (VOG), Future (FUTR), Unite (UTG), St Modwen (SMP), Cherkizovo (CHE), Watkin Jones (WJG), 3i Infrastructure (3IN), Amerisur (AMER), PureTech Health (PRTC), Go-Ahead (GOG), Energy Assets (EAS), Amphion Innovations (AMP) and Haydale (HAYD).