|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |   
30th of December 2010
|    Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  
June 3, 2010    

Premier Oil leads energy sector higher

Bookmark and Share

by Elaine Frei
Premier Oil leads energy sector higher

Equities markets in Europe were higher on the session, on hopes that the economic recovery might be on track after US factory orders were up in April, the US service sector remained in expansion, and existing home sales were up in the US.

The FTSE 100 added 1.16 percent to 5,211.18 in London, while the FTSE 250 was up 1.46 percent to 9,801.18.

The energy sector was mostly higher as oil and gas explorer Premier Oil (LSE: PMO) was up 6.02 percent on the 250 to lead the sector and Petrofac Ltd (LSE: PFC), which offers construction and chemical engineering services to the oil industry, led gains on the 100 as it added 5.18 percent.

Even BP (LSE: BP) managed to add 0.58 percent even though some US Senators have called on the oil producer to suspend its dividend until liability and clean-up costs for the oil spill from one of its wells in the Gulf of Mexico can be totaled, and although both Fitch Ratings and Moody’s Investors Service downgraded BP’s credit rating.

There were only two decliners in the energy sector, as Melrose Resources (LSE: MRS) fell 0.14 percent and oil and gas explorer Afren (LSE: AFR) dropped 1.58 percent.

Most miners were higher, led by Eurasian Natural Resources (LSE: ENRC), which was up 4.3 percent, but miners also grabbed the three top spots on the decliners list on the 100, led by Randgold Resources (LSE: RRS), which fell 2.53 percent on the session.

Chipmaker ARM Holdings (LSE: ARM) was up 4.98 percent after an analyst predicted that semiconductor sales around the world will rise by 27 percent this year, higher than previous projections, while Aviva (LSE: AV) was the best performer in a mostly higher insurance sector, as it added 4.05 percent after Goldman Sachs upgraded the insurer from “neutral” to “buy” and placed it on its “conviction buy” list.

Video game retailer Game Group (LSE: GMG) added 6.87 percent on the 250 to lead the mostly higher retail sector and all gainers in London, while consumer electronics retailer DSG International (LSE: DSGI) turned in the worst performance in the sector as it dropped 1.73 percent.

Fund manager BlueBay Asset Management (LSE: BBAY) led decliners on the 250 as it fell 4.17 percent.

The FTSE Eurofirst 300 was up 1.28 percent to 1,016.38 while the Dax added 1.23 percent to 6.054.63, the CAC-40 was 1.59 percent higher to 3,557.34 and the IBEX gained 0.09 percent to 9,276.2.

Asia-Pacific markets were mostly higher on good news about sales of cars and homes in the US, which raised hopes that demand for Asian-made products will increase.

The Nikkei 225 added 3.24 percent to 9,914.19 in Tokyo for its biggest one-day gain in six months, while the Topix index was up 2.37 percent to 890.64 and the Mothers market gained 2.15 percent to 421.76.

Carmakers were higher as sales grew, with Toyota Motor (TYO: 7203) up 3.55 percent after May sales grew by 6.7 percent, while Honda Motor (TYO: 7267) added 4.28 percent on a 19 percent rise in sales and Nissan Motor (TYO: 7201) gained 4.83 percent after its US sales jumped 24 percent in May from a year earlier.

Exporters were also helped by a weaker yen, while the shipping sector advanced after Mizuho Securities issued upgraded recommendations and target share prices in the sector.

The broker upgrades sent Mitsui OSK Lines (TYO: 9104) up 3.97 percent while Nippon Yusen (TYO: 9101) added 4.67 percent and Kawasaki Kisen KK (TYO: 9107) was 5.7 percent higher.

Clothing retailer Fast Retailing (TYO: 9983) gained 7.2 percent after sales at its Uniqlo chain of stores saw gains for the first time in three months.

Elsewhere in the region, the Hang Seng was up 1.62 percent to 19,786.71, while India’s Sensex added 1.68 percent to 17,022.33, the Kospi was 1.93 percent higher to 1,661.84 in South Korea and Taiwan’s Taiex gained 2.29 percent to 7,360.28.

The Sydney Ordinaries added 2.33 percent to 4,506.2 and the S&P/ASX200 was up 2.4 percent to 4,486 in Australia, while the Straits Times Index was up 2.42 percent to 2,793.47 in Singapore.

On the other hand, the Shanghai Composite dropped 0.73 percent to 2,442.66.

New York markets were lower in midday trade after earlier gains as some retailers reported that sales did not meet expectations in May even though consumer confidence was up during the month, as reported by the Conference Board.

The Dow Jones Industrial Average was down 0.55 percent to 10,193.54 at just past 12:30 p.m. in New York, while at the same time the S&P 500 had dropped 0.39 percent to 1,094.1 and the Nasdaq Composite was 0.07 percent lower to 2,279.47.

Crude oil prices were mixed in midday trade, with West Texas Intermediate crude down slightly as Brent crude was nearly 50 cents higher, while metals prices were led lower by an $18 decline in the price of gold.

Discuss this in the Finance Markets forums

Story link: Premier Oil leads energy sector higher

Financial Services:

Related financial stories to: Premier Oil leads energy sector higher:
Previous: «
Next: »

Visited 1410 times, 2 so far today

No Comments »

No comments yet.

RSS feed for comments on this post.

Leave a comment

Tags: , , , ,