Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Ukraine violence weighs on FTSE despite Shell surprise

Ukraine violence weighs on FTSE despite Shell surprise

A fresh outbreak of violence in the Ukraine has weighed on investor sentiment, keeping a lid on FTSE 100 gains despite impressive results from Royal Dutch Shell (RDSb).

The FTSE 100 rose just nine points, or 0.1% to 6,780 as pro-Russian separatists escalated their revolt in Ukraine's industrial east.

Shell rose 5% to £25.52 after the petrol giant's impressive results for the first quarter of 2014. Net income jumped from $2.9 billion (£1.7 billion) to $7.3 billion, beating investors' expectations by around $2 billion.

Investec analyst Neill Morton placed his £22.50 price target for the shares and forecast under review following the news. 'The cold US winter and global liquefied natural gas (LNG) trading were key (but unquantified) drivers and the addition of Repsol's LNG assets were timely,' he said. However, he noted that Shell traditionally enjoyed strong first quarters and cautioned against 'over-extrapolation' of the positive numbers.

Tullow Oil (TLW.L) meanwhile jumped 18p, or 2.1%, to 883.4p after it announced the sale of parts of its Schooner and Ketch gas fields in the North Sea and confirmed guidance for the rest of the year.

'Based on the initial consideration of £35 million, this suggests a sale price of around $9.6 per barrel, which we believe reasonable due to the maturity and gas content of the assets,' said analysts at Liberum.

Rolls-Royce's (RR.L) announcement that it was talking to Siemens about a possible sale of its gas turbine and compressor business was also welcomed by investors. The engine maker rose 21p, or 2.1%, to £10.43.

Shire (SHP.L) edged up 63p, or 1.9% to £33.27 after a turbulent day of trading yesterday when it surged before giving away its gains after initial excitement over a possible takeover by US Botox manufacuter Allergan waned. 

BG Group (BG.L) continued its recovery from Monday's slump prompted by the departure of chief executive Chris Finlayson. The oil and gas group jumped 16p, or 1.4%, to £11.97 as investors continued to speculate the departure could raise the chances of a takeover.

Tesco (TSCO.L) was among nine FTSE 100 stocks trading ex-dividend, dropping 9.9p, or 3.3%, to 294p.

Standard Life (SL.L) fell 7p, or 0.5%, to £12.98 after announcing Budget changes to pension rules had led to a 50% drop in annuity sales.

Heritage Oil (HOIL.L) soared 22.5%, by 57.5p to 313.1p, after Energy Investment Global agreed a cash offer of 320p a share for the FTSE 250 company.

Thorntons' (THT.L) share price melted after the chocolatier announced a third quarter drop in sales year-on-year. The FTSE small cap stock fell 24.5p, or 17.3%, to 117.5p.

Better-than-expected eurozone inflation figures helped the euro jump to $1.3831, having earlier hit a low of $1.37705. Eurozone inflation was 0.7% in April, calming fears over deflation that had been sparked by a 0.5% reading for March.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
CIO Tapes 2: two warnings and a lot of optimism

CIO Tapes 2: two warnings and a lot of optimism

Our group of leading asset management CIOs see a lot of opportunities – and overseas investors are buying UK too

Play Wealth Manager Retreat 2017: size isn't everything

Wealth Manager Retreat 2017: size isn't everything

We asked our delegates at the Wealth Manager Retreat what they think about the recent wave of consolidation in the industry.

1 Comment Play CIO Tapes - part 3: 'passive funds are anti-capitalist'

CIO Tapes - part 3: 'passive funds are anti-capitalist'

Citywire recently gathered three of the UK's leading fund investment heads to discuss their hopes, fears and the issues that their jobs throw at them daily.

Read More
Your Business: Cover Star Club

Profile: Kleinwort Hambros' boss on how to manage five banks

Profile: Kleinwort Hambros' boss on how to manage five banks

Welding together Kleinwort and Hambros – two of Britain’s most historic banks, founded in 1786 and 1839 respectively – was always going to be a challenge.

Wealth Manager on Twitter