Market Report: Barclays analysts might think Tullow Oil is worth a punt - but not everyone agrees
The FTSE 250 oil driller is among the shares being “shorted” by hedge fund Odey Asset Management
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Your support makes all the difference.Analysts at Barclays might think Tullow Oil is worth a punt, but not everyone shares their view.
The FTSE 250 oil driller is among the shares being “shorted” by hedge fund Odey Asset Management, which is betting on the stock falling as the oil downturn persists.
Odey has built a 4.4 per cent short position in recent days, according to Financial Conduct Authority filings, in a wager that is worth £40m at the current price.
The hedge fund was quids-in as Tullow slid 14.1p to 161.5p, well below Barclays’ 280p target price, as the price of Brent crude reversed early gains.
The FTSE 100 failed to recover from Monday’s slump, falling another 57.17 points to 5,632.19 – its lowest mark since summer 2012 – as investors did not wait to find out if we are on the verge of another global financial crisis.
The banking sell-off continued, with Barclays plunging 7.65p to 156.25p and Asia-focused bank Standard Chartered losing 23.7p at 403.3p.
Brokers put the brakes on Randgold Resources’ rally by arguing that the year’s top blue-chip performer now looks fairly valued. Deutsche Bank and HSBC cut their ratings on the gold producer, which retreated 95p to 5,905p, to hold.
Vague speculation that AstraZeneca was sniffing around US liver disease firm Intercept Pharmaceuticals – a company Shire is rumoured to have looked at – boosted the drug maker by 8.5p to 3,914.5p.
Among the market winners was advertising beast WPP, which gained 45p to 1,383p as broker JP Morgan hiked its target price to 1,770p.
Ascential, the magazine business, made a solid debut on a topsy-turvy day for markets, finishing unchanged at 200p.
Investors cashed in Sportingbet and now Bwin-party owner GVC, down 24p at 456p after Norbert Teufelberger, Bwin’s former chief executive and a director of the new group, sold shares worth £2.25m.
Elsewhere, it emerged that former Sun editor Kelvin MacKenzie almost doubled his stake last month in Rightster, giving him a 4 per cent holding in the AIM-listed video group run by his son. Rightster was unmoved at 4.75p.
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