Market Report: Investors spooked after BG puts expansion plans on hold

 

It doesn’t take much to spook investors shortly after a profit warning and chatter on Friday about BG’s Australian project sent it tumbling.

The gas group issued a profit warning last month amid Egyptian unrest but on Friday its plan to turn coal-bed methane into liquefied gas in Australia was being questioned. Australian media reported it had dropped one of the production options at the Queensland venture.

BG said the planned production had not changed but that didn’t stop traders worrying. BG wasn’t helped when analysts at Investec issued a sell note and said, following its full-year results this week, they had revised “gas price assumptions and higher interest charges”.

BG’s anticipated growth from projects in Brazil and Australia remains attractive in the longer term but the City hit the sell button and it fell 33.5p to 1,053p.

The wider market stayed in positive territory even after the weaker-than-expected non-farm payroll report, as traders instead focused on the better employment figures. The FTSE 100 ticked up 13.4 points to 6,571.68.

A failed drugs trial from Shire for its Vyvanse treatment for major depressive disorder saw it slip 10p to 3,122p. But analysts said it was time  to buy.

The sweeteners maker Tate & Lyle was 13.5p up at 774.5p after JPMorgan Cazenove said it would benefit from sugar’s recent negative press because of its “health-focused specialty ingredients business”.

AIM-listed Empyrean Energy rose 0.75p to 12.5p when Aurora, its partner at a Texas shale development, was bought for A$1.8bn (£988m).

Argentina-focused shale explorer Andes Energia said it had de-risked part of its site in the South Mendoza province and it jetted 11p to 65p.

A strong trading update from Naibu Global International, the maker of clothing and shoes in China, saw it soar 16.5p to 74.5p.

Trinity Exploration abandoned its El Dorado exploration well off Trinidad and lost 15p to 119.75p.

Independent Oil & Gas said its partnership with ATP, after it was bought by Alpha Petroleum, will continue. Independent rose 4.25p to 24.75p.

PROMOTED VIDEO
News
ebooksNow available in paperback
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

Austen Lloyd: Company Secretary

Excellent Package: Austen Lloyd: EAST ANGLIA - SENIOR SOLICITOR LEVEL ROLE** -...

Citifocus Ltd: German Speaking Client Specialist

£Attractive Package: Citifocus Ltd: Prestigious asset management house seeks a...

Citifocus Ltd: Performance & Risk Oversight

£Negotiable: Citifocus Ltd: This is a varied role focusing on the firm's mutua...

h2 Recruit Ltd: Sales Director - SaaS (SME/Channel) - £140,000 OTE

£90000 - £140000 per annum + benefits: h2 Recruit Ltd: Are you a high achievin...

Day In a Page

Homeless Veterans Christmas Appeal: ‘We give them hope. They come to us when no one else can help’

Christmas Appeal

Meet the charity giving homeless veterans hope – and who they turn to when no one else can help
Should doctors and patients learn to plan humane, happier endings rather than trying to prolong life?

Is it always right to try to prolong life?

Most of us would prefer to die in our own beds, with our families beside us. But, as a GP, Margaret McCartney sees too many end their days in a medicalised battle
Thomas Cook's outgoing boss Harriet Green got by on four hours sleep a night - is that what it takes for women to get to the top?

What does it take for women to get to the top?

Thomas Cook's outgoing boss Harriet Green got by on four hours sleep a night and told women they had to do more if they wanted to get on
Christmas jumper craze: Inside the UK factory behind this year's multicultural must-have

Knitting pretty: British Christmas Jumpers

Simmy Richman visits Jack Masters, the company behind this year's multicultural must-have
French chefs have launched a campaign to end violence in kitchens - should British restaurants follow suit?

French chefs campaign against bullying

A group of top chefs signed a manifesto against violence in kitchens following the sacking of a chef at a Paris restaurant for scalding his kitchen assistant with a white-hot spoon
Radio 4 to broadcast 10-hour War and Peace on New Year's Day as Controller warns of cuts

Just what you need on a New Year hangover...

Radio 4 to broadcast 10-hour adaptation of War and Peace on first day of 2015
Cuba set to stage its first US musical in 50 years

Cuba to stage first US musical in 50 years

Claire Allfree finds out if the new production of Rent will hit the right note in Havana
Christmas 2014: 10 best educational toys

Learn and play: 10 best educational toys

Of course you want them to have fun, but even better if they can learn at the same time
Paul Scholes column: I like Brendan Rodgers as a manager but Liverpool seem to be going backwards not forwards this season

Paul Scholes column

I like Brendan Rodgers as a manager but Liverpool seem to be going backwards not forwards this season
Lewis Moody column: Stuart Lancaster has made all the right calls – now England must deliver

Lewis Moody: Lancaster has made all the right calls – now England must deliver

So what must the red-rose do differently? They have to take the points on offer 
Cameron, Miliband and Clegg join forces for Homeless Veterans campaign

Cameron, Miliband and Clegg join forces for Homeless Veterans campaign

It's in all our interests to look after servicemen and women who fall on hard times, say party leaders
Millionaire Sol Campbell wades into wealthy backlash against Labour's mansion tax

Sol Campbell cries foul at Labour's mansion tax

The former England defender joins Myleene Klass, Griff Rhys Jones and Melvyn Bragg in criticising proposals
Nicolas Sarkozy returns: The ex-President is preparing to fight for the leadership of France's main opposition party – but will he win big enough?

Sarkozy returns

The ex-President is preparing to fight for the leadership of France's main opposition party – but will he win big enough?
Is the criticism of Ed Miliband a coded form of anti-Semitism?

Is the criticism of Miliband anti-Semitic?

Attacks on the Labour leader have coalesced around a sense that he is different, weird, a man apart. But is the criticism more sinister?
Ouija boards are the must-have gift this Christmas, fuelled by a schlock horror film

Ouija boards are the must-have festive gift

Simon Usborne explores the appeal - and mysteries - of a century-old parlour game