Market Report: Investors fear Gulf’s fundraising will be done at junk-bond prices

 

Gulf Keystone Petroleum tumbled yesterday amid concerns that the oil and gas explorer is struggling to raise cash.

The Kurdistan-focused independent said earlier this month it needs to raise $250m (£150m) from bondholders to fund the ongoing development of its Shaikan field, but yesterday the market was swirling with rumours that the  company’s investor roadshow is struggling.

Investors fear the issue will be priced at junk-bond levels and two renowned short sellers, Simon Cawkwell and Lucian Miers, have backed this thesis in the past few days.

Gulf Keystone fell 12.25p to 86.12p.

The first quarter of 2014 ended yesterday, with traders in a more downbeat mood than when it started. There was talk of the blue-chip FTSE 100 index ploughing its way to 7,000 at the beginning of the year, but yesterday the index closed down 17.21 points at 6,598.37 – 132.3 points lower than at the start  of 2014.

Michael Hewson, chief market analyst at CMC Markets, said: “The FTSE 100 is down not just a little bit – it’s down a lot. It’s a bit strange, especially given the outlook we’ve got in the UK, but then again it’s a global index. If you look at the FTSE 250, which reflects the UK, it’s a different story.”

The FTSE 250 closed yesterday at 16, 273.72, 354.63 points higher than the start of the year. The biggest riser on the mid-cap index was Russian-focused steel producer Evraz, which added 7.65p to 78.4p.

Pensions provider Just Retirement had an afternoon bounce after chief executive Rodney Cook bought 50,000 shares, but the company closed down 1.2p at 138.8p.

Online video-advertising specialist blinkx yesterday published a full rebuttal of claims made by a Harvard professor in January that it was “defrauding advertisers”. 

Chief executive Subhransu Brian Mukherjee said the company had “diverted considerable time, energy and resources” to addressing “the inaccurate and misleading assertions made”, adding: “We do not intend to engage in any further debate on this topic.”

Blinkx, which met with investors and analysts yesterday, fell 0.5p to 112.5p.

News
people
Arts and Entertainment
Game Of Thrones
Uh-oh, winter is coming. Ouch, my eyes! Ygritte’s a goner. Lysa’s a goner. Tywin’s a goner. Look, a dragon
tvSpoiler warning: The British actor says viewers have 'not seen the last' of his character
Arts and Entertainment
'New Tricks' star Dennis Waterman is departing from the show after he completes filming on two more episodes
tvOnly remaining original cast-member to leave long-running series
Sport
The Etihad Stadium, home of Manchester City
premier league

The Independent's live blog of today's Premier League action

PROMOTED VIDEO
News
Polly Borgen at the Tribeca Film Festival in 2012
peopleThe Emmy award-winner starred in Cape Fear, the Sopranos and Desperate House Wives
News
people'I hated him during those times'
News
Britain's shadow chancellor Ed Balls (L) challenges reporter Rob Merrick for the ball during the Labour Party versus the media soccer match,
peopleReporter left bleeding after tackle from shadow Chancellor in annual political football match
News
Rumer was diagnosed with bipolarity, attention deficit hyperactivity disorder and post-traumatic stress disorder: 'I was convinced it was a misdiagnosis'
peopleHer debut album caused her post-traumatic stress - how will she cope as she releases her third record?
Life and Style
Couples have been having sex less in 2014, according to a new survey
life
Arts and Entertainment
tvReview: 'Time Heist' sees a darker side to Peter Capaldi's Doctor
News
ebooksAn unforgettable anthology of contemporary reportage
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

Senior BA - Motor and Home Insurance

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Market Risk & Control Manager

Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...

SQL Developer - Watford/NW London - £320 - £330 p/d - 6 months

£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Head of Audit

To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...

Day In a Page

Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits
Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam