Market Report: Citi takes expansive look at the oil industry
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Your support makes all the difference.Much of the City decamped to the wine bars and pubs of the Square Mile to enjoy the first hints of summer, but those who were left at their desks tanked up on oil on Citi’s recommendation.
The investment bank followed up its far-reaching note on the commodities sector with a similarly expansive look at the oil industry, sifting through the rubble to find any gems. It concluded that Tullow is the best bet in the industry, thanks to low-cost growth prospects in Ghana and East Africa that have largely been overlooked amid the oil price panic. The endorsement sent Tullow surging 29.1p to 368.6p, while an upturn in oil prices buoyed industry engineer Weir Group 91p to 1,880p.
BP, on the other hand, slipped 0.05p to 470.95p after Citi downgraded the oil giant, saying its self-help potential has largely run its course.
After weakness in the previous session, the mining sector rebounded strongly as iron ore prices stabilised and traders picked up cut price shares. Anglo American rallied 40.8p to 1,039.5p, BHP Billiton climbed 43.5p to 1,459.5p, Glencore put on 8.2p to 293.35p and Rio Tinto bounced 78.5p to 2,892.5p. The FTSE 100 climbed 10.96 points to 7,075.26.
Aberdeen Asset Management crumbled 12.7p to 493.8p due to Indian tax woes and pessimistic proclamations from RBC Capital Markets. The investment house has reportedly been hit by a hefty backdated tax bill by Indian authorities. Separately, RBC downgraded Aberdeen as it predicted withdrawals from funds will have more than doubled in the last quarter.
Healthcare companies were on the gurneys as investors sold out. News that private equity group Cinven sold a 10 per cent chunk of Spire Healthcare at 340p a share sent the hospital operator tumbling 37.1p to 330p. Meanwhile, reports that Deutsche Bank has been hired to sell a 20 per cent chunk of Al Noor Hospitals on behalf of Ithmar Capital sent the Abu Dhabi company tumbling 87.5p to 905p.
Connemara Mining rocketed 1p to 1.62p after announcing it has been awarded new gold prospecting licences in Ireland.
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