Market Report: Genel curbs fears over Kurdish oil

Stop worrying about the risks of getting oil out of Kurdistan, City scribblers declared yesterday – Genel Energy has proved it is viable. UBS brokers think the fact former BP boss Tony Hayward's Genel has successfully managed to transport the lucrative black stuff out of the region is a reason to buy its shares.

There has been a political row between Iraq and its autonimous region about duties payable and the export of oil, but UBS said: "Kurdish oil has been reaching international markets by truck for several months with no apparent payment, legal or political issues."

The Aim-listed group, which is run by Mr Hayward with the former Goldman Sachs banker Julian Metherell as finance director, has recently reported a run of good news with strong drilling results from wells at Chia Surkh, Tawke Deep, Ber Bahr and Bina Bawi that UBS thinks has not been appreciated by the market.

They also think the market is undervaluing the company's frontier explorations in Morocco and Malta.

UBS rated it a buy with a 1,035p price target because of these "positive drilling results" and the fact the "risks around exports … from Kurdistan are starting to diminish".

The shares gushed 18.5p to 943.5p but are still below their 2011 float price of 1,000p.

Genel was founded by Nat Rothschild, who retains more than a 7 per cent stake and has certainly been a better investment than his Bumi exploits.

Yesterday, Indonesian coal specialist Bumi agreed to buy the 23.8 per cent stake that Indonesia's powerful Bakrie family holds, a deal which sets up a battle with Mr Rothschild.

The news came after it was confirmed that current chairman Samin Tan was looking to buy the stake in order to clear-up Bumi's convoluted ownership structure.

Mr Rothschild, Bumi's co-founder and 15 per cent shareholder, attacked the proposal, arguing that it would give Mr Tan too much control of the business. If the deal goes through, Mr Tan will own nearly half of Bumi's shares.

Bumi's shares have been suspended since April, amid an investigation which showed $201m (£133m) had gone missing in a key unit.

The benchmark index was back on form after a blip on Tuesday. Signs that the Federal Reserve will maintain its economic stimulus longer than previously expected cheered traders. The FTSE 100 recovered 38.45 points to 6,543.41. The update from the Fed sent metal prices up again which whet the appetite of punters to riskier stocks. Eight miners were in the top 10 risers with Mexican gold and silver explorer Fresnillo leading the way, up 114.5 p to 1,018p.

On the mid-cap index, Britvic lost some sparkle after its rival drinks group AG Barr finally walked away from their proposed merger. A £1.9bn deal originally agreed in November was delayed because of a Competition Commission inquiry, which finally cleared a merger earlier this week. But by then Britvic had decided the deal was no longer beneficial and AG Barr yesterday revealed the Robinsons squash group had rejected a new, better, offer. Irn Bru owner AG Barr fizzed up 0.5p to 522p as it said it would not make another offer; Britvic fell 10p to 512p. SuperGroup added 49p to 858p on growing sales as it reported annual pre-tax profits of £51.8m.

Recruiter Hays was 4.9p better off at 99.9p when it announced a stronger-than-expected fourth quarter, boosted by a better UK jobs market.

Centaur Media, the under-pressure publisher of The Lawyer and Marketing Week, said sales had fallen 3 per cent in the year to June, but pre-tax profits before exceptional items should be up 8 per cent. It published a 1.25p gain to 38.75p.

Flogging mobile phones from shops on the high street is no longer a licence to print money the City warned and that means it is time to ditch Carphone Warehouse.

Analysts at Morgan Stanley said they think the sales growth for mobiles is nearing "maturity" and the "market is becoming distinctly unattractive" so Carphone's business model across Europe is flawed.

They said Carphone has "outlined plans to offer its know-how and IT platforms to third-party retailers" and "this could become a material profit generator", but with few details of how this will work it is difficult to value.

Until there is more detail, Morgan Stanley rated it underweight with a 165p price target but it was static at 248p.

Pottery group Portmeirion has bought the long leasehold of its Stoke-on-Trent head office and the company made a 12.5p gain to 642.5p.

Communications group Communisis has won a contract with Lloyds Banking Group and was 12.5p better off at 67p.

Tiddler Conroy Gold and Natural Resources produced a positive mineral report and it edged up 0.2p to 1.52p.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
Sport
England's women celebrate after their 3rd place play-off win against Germany
Women's World CupFara Williams converts penalty to secure victory and bronze medals
Arts and Entertainment
Ricardo by Edward Sutcliffe, 2014
artPortraits of LA cricketers from notorious suburb go on display
News
newsHillary Clinton comments on viral Humans of New York photo of gay teenager
Arts and Entertainment
The gang rape scene in the Royal Opera’s production of Gioachino Rossini’s Guillaume Tell has caused huge controversy
music
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Sales Assistant / Buyer

£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...

Recruitment Genius: Customer Service Advisor

£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....

Recruitment Genius: Compliance Manager

£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...

Day In a Page

The Greek referendum exposes a gaping hole at the heart of the European Union – its distinct lack of any genuine popular legitimacy

Gaping hole at the heart of the European Union

Treatment of Greece has shown up a lack of genuine legitimacy
Number of young homeless in Britain 'more than three times the official figures'

'Everything changed when I went to the hostel'

Number of young homeless people in Britain is 'more than three times the official figures'
Compton Cricket Club

Compton Cricket Club

Portraits of LA cricketers from notorious suburb to be displayed in London
London now the global money-laundering centre for the drug trade, says crime expert

Wlecome to London, drug money-laundering centre for the world

'Mexico is its heart and London is its head'
The Buddhist temple minutes from Centre Court that helps a winner keep on winning

The Buddhist temple minutes from Centre Court

It helps a winner keep on winning
Is this the future of flying: battery-powered planes made of plastic, and without flight decks?

Is this the future of flying?

Battery-powered planes made of plastic, and without flight decks
Isis are barbarians – but the Caliphate is a dream at the heart of all Muslim traditions

Isis are barbarians

but the Caliphate is an ancient Muslim ideal
The Brink's-Mat curse strikes again: three tons of stolen gold that brought only grief

Curse of Brink's Mat strikes again

Death of John 'Goldfinger' Palmer the latest killing related to 1983 heist
Greece debt crisis: 'The ministers talk to us about miracles' – why Greeks are cynical ahead of the bailout referendum

'The ministers talk to us about miracles'

Why Greeks are cynical ahead of the bailout referendum
Call of the wild: How science is learning to decode the way animals communicate

Call of the wild

How science is learning to decode the way animals communicate
Greece debt crisis: What happened to democracy when it’s a case of 'Vote Yes or else'?

'The economic collapse has happened. What is at risk now is democracy...'

If it doesn’t work in Europe, how is it supposed to work in India or the Middle East, asks Robert Fisk
The science of swearing: What lies behind the use of four-letter words?

The science of swearing

What lies behind the use of four-letter words?
The Real Stories of Migrant Britain: Clive fled from Zimbabwe - now it won't have him back

The Real Stories of Migrant Britain

Clive fled from Zimbabwe - now it won’t have him back
Africa on the menu: Three foodie friends want to popularise dishes from the continent

Africa on the menu

Three foodie friends want to popularise dishes from the hot new continent
Donna Karan is stepping down after 30 years - so who will fill the DKNY creator's boots?

Who will fill Donna Karan's boots?

The designer is stepping down as Chief Designer of DKNY after 30 years. Alexander Fury looks back at the career of 'America's Chanel'