Tullow Oil down on disappointing profits, bad news

| March 9, 2011 | 0 Comments
Tullow Oil down on disappointing profits, bad news

European equities markets were lower Wednesday as worries about civil strife in North Africa and the Middle East outweighed bids news, and after Brent crude oil prices resumed their gains on more violence in Libya and fears that supply-disrupting trouble could spread.

The FTSE 100 dropped 0.63 percent to 5,937.3 in London, while the FTSE 250 was down 0.11 percent to 11,730.2.

The biggest decliner in a mostly lower energy sector was Tullow Oil (LSE: TLW), which dropped 3.22 percent after it said that profits did not rise as much as expected, it was still having trouble resolving a tax issue in Uganda, and it gave up on projects in several nations, including in Angloa.

There were only three gainers in the energy sector, led by Heritage Oil (LSE: HOIL), which added 8.12 percent while Hansen Transmissions International (LSE: HSN) was up 3.25 percent and Esssar Energy (LSE: ESSR) gained 0.49 percent.

Over on the 250, chemicals group Yule Catto & Co (LSE: YULC) dropped 8.21 percent to lead gains on the index and in the chemicals sector.

Prudential (LSE: PRU) was up 4.9 percent to lead gains on the 100 on a report that full-year income more than doubled and that operating profits exceeded estimates, leading the insurer to raise its dividend by 20 percent.

Leading six decliners in the insurance sector was car insurer Admiral Group (LSE: ADM), which was 0.66 percent lower.

Restaurant Group (SLE: RTN) added 9.4 percent to lead gains on the 250 after its CEO said that the restaurant operator will meet full-year expectations.

Almost all miners saw declines, led by Ferrexpo (LSE: FXPO) with a drop of 3.72 percent, while the two gainers in the sector were Randgold Resources (LSE: RRS), which added 3.33 percent while Hochschild Mining (LSE: HOC) was up 0.3 percent.

Tobacco companies were mixed as Imperial Tobacco Group (LSE: IMT) added 3.45 percent, but British American Tobacco (LSE: BATS) dropped 2.18 percent as it traded ex-dvidend.

London banks were lower, led by Standard Chartered (LSE: STAN), which was 2.68 percent lower and was also trading ex-dividend.

Homebuilders saw gains, led by Barratt Developments (LSE: BDEV), which added 3.79 percent while Taylor Wimpey (LSE: TW) was 3.57 percent higher.

The FTSE Eurofirst 300 was down 0.25 percent to 1,144.52 while the IBEX fell 0.09 percent to 10,559.5, the Dax was 0.46 percent lower to 7,131.8 and the CAC-40 dropped 0.55 percent to 3,993.81.

Most markets in the Asia-Pacific region were higher on earlier declines in crude oil prices.

The Nikkei 225 was 0.61 percent higher to 10,589.5 in Tokyo, while the Topix index added 0.55 percent to 944.29 but the Mothers market dropped 0.9 percent to 512.69.

Yokogawa Electric Corp (TYO; 6841), which makes electronic measuring tools) added 5.6 percent on an upgrade from Mizuho Securities, sending its recommendation from “underperform” to “outperform”.

Video game maker Nintendo (TYO: 7974) was up 3.7 percent after sales of a new game hit 1.08 million units on the first day the game was available.

Tiremakers Bridgestone Corp (TYO: 5108) and Sumitomo Rubber (TYO: 5110) were higher, gaining 3.1 percent and 3.4 percent respectively, after Citigroup raised its target share prices on both companies.

Other gainers in the region included Taiwan’s Taiex, which was up 0.03 percent to 8,750.02, while the Shanghai Composite added 0.07 percent to 3,002.15, the Sensex was 0.16 percent higher to 18,469,9, South Korea’s Kospi gained 0.26 percent to 2,001.47 and the Hang Seng was up 0.42 percent to 23,810.1 in Hong Kong.

The Straits Times Index was 0.35 percent lower to 3,092.9 in Singapore, while in Australia the Sydney Ordinaries dropped 0.8 percent to 4,863.2 and the S&P/ASX200 was 0.84 percent lower to 4,767.8.

Equities markets were mixed in midday trade in New York as the Dow Jones Industrial Average was up 0.13 percent to 12,230.8, but the S&P 500 had dropped 0.07 percent to 1,320.83 and the Nasdaq Composite was 0.43 percent lower to 2,753.78.

Crude oil prices were also mixed, with April contracts for West Texas Intermediate crude down 16 cents to $104.86 per barrel after the US Energy Information Administration said that crude oil stockpiles in the US were up last week, but Brent crude had added $2.36 to $115.42 per barrel at last report on the continued fighting in Libya and fears that the unrest could spread and interrupt supplies elsewhere.

Gold and silver prices were both up slightly at midday in New York, but copper had dropped 13 cents to $4.21 per pound.

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