Market Report: Investors spooked after BG puts expansion plans on hold
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.It doesn’t take much to spook investors shortly after a profit warning and chatter on Friday about BG’s Australian project sent it tumbling.
The gas group issued a profit warning last month amid Egyptian unrest but on Friday its plan to turn coal-bed methane into liquefied gas in Australia was being questioned. Australian media reported it had dropped one of the production options at the Queensland venture.
BG said the planned production had not changed but that didn’t stop traders worrying. BG wasn’t helped when analysts at Investec issued a sell note and said, following its full-year results this week, they had revised “gas price assumptions and higher interest charges”.
BG’s anticipated growth from projects in Brazil and Australia remains attractive in the longer term but the City hit the sell button and it fell 33.5p to 1,053p.
The wider market stayed in positive territory even after the weaker-than-expected non-farm payroll report, as traders instead focused on the better employment figures. The FTSE 100 ticked up 13.4 points to 6,571.68.
A failed drugs trial from Shire for its Vyvanse treatment for major depressive disorder saw it slip 10p to 3,122p. But analysts said it was time to buy.
The sweeteners maker Tate & Lyle was 13.5p up at 774.5p after JPMorgan Cazenove said it would benefit from sugar’s recent negative press because of its “health-focused specialty ingredients business”.
AIM-listed Empyrean Energy rose 0.75p to 12.5p when Aurora, its partner at a Texas shale development, was bought for A$1.8bn (£988m).
Argentina-focused shale explorer Andes Energia said it had de-risked part of its site in the South Mendoza province and it jetted 11p to 65p.
A strong trading update from Naibu Global International, the maker of clothing and shoes in China, saw it soar 16.5p to 74.5p.
Trinity Exploration abandoned its El Dorado exploration well off Trinidad and lost 15p to 119.75p.
Independent Oil & Gas said its partnership with ATP, after it was bought by Alpha Petroleum, will continue. Independent rose 4.25p to 24.75p.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments