The Market Close - BP sells Egypt oil fields - Collins Sarri Statham Investments

Today's Closing Update

U.S.Stocks after an early move to the upside, remained mostly positive in mid-day trading. The upward move on the day comes on the heels of the mixed performance seen in the previous session.

European Stocks finished the session in the black, as investors tried to shake off concerns surrounding trade and political disruption in the White House.

Britain and the European Union could agree a “provisional” deal next week on a post-Brexit transition period, a senior Brussels diplomat said on Friday, stressing that this will only happen if London and the bloc resolve all divorce matters first. British Prime Minister Theresa May will attend an EU summit next Thursday and Friday, and is hoping for a deal that will reassure business that not much will change for about two years after Britain leaves the bloc as scheduled in March 2019.

Despite Brexit uncertainties and political turmoil in South Africa, wealth manager Investec said full year operating profit was expected to be in line with 2016. The company warned that impairments in South Africa and the ongoing UK business were expected to rise although the credit loss ratio remained at the lower end of the group’s long term range at approximately 0.30%. Investec said group revenue was expected to be ahead of the previous year, with recurring income set to make up 76% of total operating income.

Spotify has been promoting its appeals to investors ahead of a stock market listing on 3 April, targeting sufficient growth to fend off rivals like Apple and Amazon while still generating profits. Chief executive Daniel Ek said the company would prioritise growth over profits but said he can see a “clear path to making money”. The presentation was aimed at reassuring possible investors of the stability of the business and the low risk of being economically affected by unexpected volatility.

BP has begun to sell off its mature oil fields in Egypt to shift its focus to developing the country’s large natural gas reserves. The Gulf of Suez assets have been available to purchase for a few months, it has now been disclosed, and British Petroleum is hoping to raise roughly $1bn from a deal. BP has an overall goal to sell between $2bn and $3bn in assets this year. The company has been on the road to recovery since the oil spill in the Gulf of Mexico in 2010.

Land Securities opened a tender offer to acquire bond notes worth £1bn and also announced its intention of raising fresh funds through a new bond issue. The UK100-listed property firm – through its wholly-owned subsidiary Land Securities PLC – offered to buy any and all of three bond issues. Its £583m outstanding 5.391% notes dues 2025, £243.3 million outstanding 5.396% notes due 2030 and £175.7m outstanding 5.125 notes due 2034.

Oil Prices were little changed, set for a weekly decline on concerns that global crude supplies are rising despite efforts by OPEC and other producers to tighten the market.

Gold Prices sank, despite yet worsening tensions over the attempted assassination of a former Russian spy in the UK, falling to 2-week lows versus the Dollar following stronger-than-expected US industrial output data.

Market Close

UK 100	7,161.1	+24.4	+0.3%
UK 250	19,804.9	-23.5	-0.1
GER 30	12,389.6	+44.0	+0.4%
FRA 40	5,282.8	+15.5	-0.3%
U.S. 30	25,008.25	+134.59	+0.5%
U.S. 500	2,758.0	+10.7	+0.4%
OIL (BRENT)	65.86	+0.74	+1.1%
GOLD	1,313.54	-2.56	-0.2%

UK Risers & Fallers

Nex Group	878.5	+203.5	+30.4%
EazyJet	1658.5	+33.5	+2.1%
BP	473.75	+9.2	+2.0%
Berkely Group	3713	-210	-5.4%
Kingfisher	343.4	-6.9	-2.0%
Assura	59.6	-1.8	-2.9%

Reported Economic Data

12.30pm: U.S. Building Permits	1.38m	1.32m	1.30m
12.30pm: U.S. Housing Starts	1.33m	1.29m	1.24m
1.15pm: U.S. Industrial Production m/m	-0.1%	0.3%	1.1%
1.15pm: U.S. Capacity Utilization Rate	77.5%	77.5%	78.1%