Equities have retraced yesterday’s losses but there is a sense of drift in early trading as we await a slew of economic announcements later on today, culminating in the Fed potentially announcing a tapering of quantitative easing in the US, although most are now expecting this to be pushed back to early 2014.
IC TIP UPDATES:
Ophir Energy (OPHR) has announced a farm-out agreement for its deepwater blocks offshore Gabon with OMV although Ophir will retain significant stakes and interest in the outcome of exploration there. Buy.
Galliford Try (GFRD) has won a £100m contract for the regeneration of the Brunswick area of east Manchester which will include 522 new homes and various community facilities. We keep our buy rating.
Online gaming business Bwin.Party Digital (BPTY) says trading has been in line with expectations during the 11 weeks since the end of September. We retain our sell recommendation.
Simon Thompson recommendation Polo Resources (POL) has reported a net asset value per share of 32.3p as of 17 December.
KEY STORIES:
BP (BP.) says it has made another oil discovery in the Gulf of Mexico which rounds off its most successful year for new field discoveries for nearly ten years. Of the 15 exploration wells BP has been involved in over the past 12 months seven have been potentially commercial discoveries, which is a hit rate of more than 40 per cent – well above the average for oil and gas exploration.
Barratt Developments (BDEV) has announced a joint venture with London & Quadrant which will further strengthen the strategic alliance between the two businesses that has been delivering property schemes in the capital since 2010.
Tullow Oil (TLW) says that its latest well offshore Cote d’Ivoire found mainly water bearing structures but has allowed it to better understand the extent of the Paon oil discovery nearby.
Quindell Portfolio’s (QPP) trading has continued to be robust in the final quarter of the year with £100m of new business secured since mid-November which leaves management confident of achieving EPS of at least 4p a share in 2014.
The turnaround plan at retailer Darty (DRTY) appears to be bearing fruit with positive like for like sales growth and market share gains in its core markets of France and Belgium with its market share figure holding steady in the Netherlands. Group revenues rose 1.8 per cent on a like for like basis to €1.7bn with group pre-tax profits up from €6.6m to €9.9m. The company also today announced the sale of its Turkish operations.
OTHER COMPANY NEWS:
Exillon Energy (EXI) says that it is no longer in bid talks.
Lettings agent Martin & Co (MCO) starts trading on Aim this morning after raising £10.35m from investors.
Fastnet Oil & Gas (FAST) has signed a farm out agreement with South Korean business SK Innovation for its interests in the Foum Assaka contract area offshore Morocco.
