Today's market overview
Equities have taken another step upwards on the back of economic data from the Chinese economy which suggests that domestic demand is picking up, which has given a boost to mining stocks in particular. The Trader Dominic Picarda believes that equities are due another leg upwards before potentially fading over the summer.
IC TIP UPDATES:
Kurdistan-focused oil explorer Genel Energy (GENL) has announced a successful discovery with its first exploration well at Chia Surkh-10. Described as a ‘significant’ discovery, the well flowed 11,950 barrels of oil a day and 15m cubic feet of gas in tests. We keep our buy.
Halfords (HFD) has reported solid trading in the past 11 weeks despite poor weather conditions with group revenues up 1.7 per cent and like for like revenues up 0.4 per cent, giving a total 0.3 per cent growth in like for like revenues over the 52 weeks to 29 March 2013. Buy.
Simon Thompson recommendationFirst Property (FPO) says its profits for the year are expected to meet forecasts and that assets under management totalled £353m at the end of March, down marginally on last year. The company still has more than 70 per cent of its funds invested in Poland where it says prospects remain positive.
Consultancy WS Atkins (ATK) reports continued strong performance in its Asia Pacific and European businesses and a sustained improvement in the UK, which is mitigating softer conditions in the US and means profits will likely exceed expectations. We keep our buy rating.
Sirius Minerals (SXX) has issued further positive drilling results from its North Yorks potash project with the latest drilling finding 58m of 88 per cent polyhalite material, and also potentially indicating that the seam identified in previous drilling is thickening.
Dunelm (DNLM) has continued its strong recent showing with a like for like sales gain of 5.2 per cent in the 13 weeks to 30 March. Total revenues grew by 15.4 per cent, boosted by three new store openings and one relocation.
Vedanta Resources (VED) has reported strong production figures for the final quarter of its financial year with record levels of mined metal output at 260,000 tonnes and record levels of silver production at 3.2m ounces. Full year oil and has production was also 19 per cent higher.
Restaurants group Prezzo (PRZ) reports a 17 per cent hike in revenues in 2012 which produced a similar rise in cash profits to £25.5m. The company opened 31 restaurants in the year, giving it a total of 211.
East African oil and has explorer Ophir Energy (OPHR) has increased its estimate of recoverable resources from the Jodari field offshore Tanzania from 700 billion cubic feet of gas to 4.1 trillion cubic feet.
OTHER COMPANY NEWS:
New World Oil & Gas (NEW), which is exploring for oil in Belize and Denmark, has noted that a drilling programme adjacent to its current Belize exploration well has announced an oil discovery. New World’s drilling at the West Gallon Jug prospect has reached 7,700m of its target 8,800m depth.
Fastnet Oil & Gas (FAST) says that independent assessment of its Shanagarry prospect in the Celtic sea suggests an unrisked, best case potential for 1.2bn barrels of oil and more than 1.3 trilling cubic feet of gas.
Oxford Catalysts (OCG) has announced an $8m order from Ventech of the US for its Fischer-Tropsch reactors.