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.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

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

iJobs Job Widget
iJobs Money & Business

SThree: Experienced Recruitment Consultant

£20000 - £40000 per annum + OTE + Incentives + Benefits: SThree: Established f...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE 40/45k + INCENTIVES + BENEFITS: SThree: The su...

Recruitment Genius: Collections Agent

£14000 - £16000 per annum: Recruitment Genius: This company was established in...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...

Day In a Page

Refugee crisis: David Cameron lowered the flag for the dead king of Saudi Arabia - will he do the same honour for little Aylan Kurdi?

Cameron lowered the flag for the dead king of Saudi Arabia...

But will he do the same honour for little Aylan Kurdi, asks Robert Fisk
Our leaders lack courage in this refugee crisis. We are shamed by our European neighbours

Our leaders lack courage in this refugee crisis. We are shamed by our European neighbours

Humanity must be at the heart of politics, says Jeremy Corbyn
Joe Biden's 'tease tour': Could the US Vice-President be testing the water for a presidential run?

Joe Biden's 'tease tour'

Could the US Vice-President be testing the water for a presidential run?
Britain's 24-hour culture: With the 'leisured society' a distant dream we're working longer and less regular hours than ever

Britain's 24-hour culture

With the 'leisured society' a distant dream we're working longer and less regular hours than ever
Diplomacy board game: Treachery is the way to win - which makes it just like the real thing

The addictive nature of Diplomacy

Bullying, betrayal, aggression – it may be just a board game, but the family that plays Diplomacy may never look at each other in the same way again
Lady Chatterley's Lover: Racy underwear for fans of DH Lawrence's equally racy tome

Fashion: Ooh, Lady Chatterley!

Take inspiration from DH Lawrence's racy tome with equally racy underwear
8 best children's clocks

Tick-tock: 8 best children's clocks

Whether you’re teaching them to tell the time or putting the finishing touches to a nursery, there’s a ticker for that
Charlie Austin: Queens Park Rangers striker says ‘If the move is not right, I’m not going’

Charlie Austin: ‘If the move is not right, I’m not going’

After hitting 18 goals in the Premier League last season, the QPR striker was the great non-deal of transfer deadline day. But he says he'd preferred another shot at promotion
Isis profits from destruction of antiquities by selling relics to dealers - and then blowing up the buildings they come from to conceal the evidence of looting

How Isis profits from destruction of antiquities

Robert Fisk on the terrorist group's manipulation of the market to increase the price of artefacts
Labour leadership: Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea

'If we lose touch we’ll end up with two decades of the Tories'

In an exclusive interview, Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea
Tunisia fears its Arab Spring could be reversed as the new regime becomes as intolerant of dissent as its predecessor

The Arab Spring reversed

Tunisian protesters fear that a new law will whitewash corrupt businessmen and officials, but they are finding that the new regime is becoming as intolerant of dissent as its predecessor
King Arthur: Legendary figure was real and lived most of his life in Strathclyde, academic claims

Academic claims King Arthur was real - and reveals where he lived

Dr Andrew Breeze says the legendary figure did exist – but was a general, not a king
Who is Oliver Bonas and how has he captured middle-class hearts?

Who is Oliver Bonas?

It's the first high-street store to pay its staff the living wage, and it saw out the recession in style
Earth has 'lost more than half its trees' since humans first started cutting them down

Axe-wielding Man fells half the world’s trees – leaving us just 422 each

However, the number of trees may be eight times higher than previously thought
60 years of Scalextric: Model cars are now stuffed with as much tech as real ones

60 years of Scalextric

Model cars are now stuffed with as much tech as real ones