Market Report: Kurdish black gold has Genel gushing

Kurdistan and Iraq still can't agree on payments for oil exports, but that hasn't stopped Tony Hayward and Nat Rothschild's Genel Energy shipping black gold out of the country.

Genel, which is backed by Mr Rothschild and run by former BP boss Mr Hayward, has begun shipping oil out of the region via Turkey despite Iraqi officials' and the Kurdistan Regional Government's failure to agree terms on payments for the exports.

Exports were halted last month through the Baghdad-controlled Iraq-Turkey pipeline. The flowing of oil again is a challenge to Iraq's control in the area.

After war and unrest, even five years ago the semi-autonomous Kurdish region was barely on the oil map. But now global explorers have noted its potential, even in the face of continued political problems.

Genel's share price gushed up on the news and gained 5p to 770p.

Shares in fellow oil explorers in the area also lifted, with the FTSE 250 group Afren up 0.4p to 139.4p, while AIM-listed Gulf Keystone Petroleum, which is developing the lucrative Shaikan Block, edged up 1.25p to 182.75p.

The International Energy Agency predicted that Iraq production could double to more than 6 million barrels a day by 2020, and by the 2030s it could be second only to Saudi Arabia. The Kurdish region's potential is smaller, but the local government hope production could grow to 1 million barrels a day by 2015 and 2 million by 2019.

The benchmark index was led down during afternoon trade by caution in the US markets ahead of the start of fourth-quarter earnings last night. In Europe, eurozone retail and confidence data was better than forecast, but the FTSE 100 index ended down 10.95 points at 6,053.63.

Stragglers on the blue-chip index included the travel group Tui. Analysts at Morgan Stanley downgraded the tour operator, which only last month rejoined the index, to underweight – a sell – and the shares booked a loss of 9.8p to 276.8p.

On the flip side, the pharmaceutical group Shire was top of the tree when it added to its supplies by buying a US genetic-disorder drug group, Lotus Tissue Repair. The shares recovered 49p to 1,963p.

After a sell-off of its shares last week, the supermarket group Sainsbury's ticked up 7.3p to 339p ahead of its trading update today. The City was last week concerned that the group had a bad Christmas, but Kantar Worldpanel revealed that it was the only one of the big four supermarkets to have gained market share.

On Monday, the Citigroup analyst Simon Weeden said a takeover of the telecoms giant Vodafone by US joint-venture partner Verizon was "no longer as outlandish as it once seemed", and today Verizon boss Lowell McAdam stoked the fire and said a purchase of Vodafone's 45 per cent of Verizon Wireless is "feasible". Does Vodafone want to sell? Traders aren't sure, but the stock dialled up a 2.75p gain to 162.4p.

Investec's banking guru Ian Gordon has turned against HSBC, reducing his rating from buy to hold. He raised his share target price to 685p, but thinks the bank has too much capital, and argues that "until investors can see how and when the 'freed-up capital' can be deployed or returned, further upside appears much more limited". The shares dipped 7p to 659.2p.

There was bad news for African Barrick Gold, which was buried at the bottom of the mid-cap index after a deal by its Canadian parent company, Barrick Gold, to sell it to China National Gold was abandoned. The shares retreated more than 20 per cent, and closed down 91.9p to 352.1p.

On AIM, Asos is no longer in fashion with analysts at Jefferies. They have downgraded it from buy to underperform, meaning it is time to sell. Jefferies' David Reynolds doesn't think Asos has done any thing wrong, he just has a "sense that the risk/reward profile has changed".

He reckons its plan to move in to Russia and China requires "fault-free execution", but he warns this might not be possible. He still regards the group as a "superb example of disruptive innovation" which is "imaginatively led and executing well" but its valuation just seems "too rich".

Mr Reynolds retains his share price target of 2,199p. The shares lost 52p to 2,645p.

The interactive gaming company Netplay revealed strong, full-year results earlier in the week, and today analysts at Daniel Stewart raised their share price target to 15p and rated it a buy. Its shares advanced 0.25p to 12.5p.

Nautilus Minerals, the underwater precious metals miner, said it had received an approach from investor Michael Bailey. The group said it had not had any contact with the potential bidder, but the shares collected 11.25p to 40p.

Start your day with The Independent, sign up for daily news emails
Voices
Ed Miliband and David Cameron are neck and neck in the polls
election 2015Armando Iannucci: on how British politics is broken
News
i100
Life and Style
Great minds like Einstein don't think alike
tech
Arts and Entertainment
Billie Piper as Brona in Penny Dreadful
tvReview: It’s business as usual in Victorian London. Let’s hope that changes as we get further into the new series spoiler alert
Life and Style
A nurse tends to a recovering patient on a general ward at The Queen Elizabeth Hospital in Birmingham
health
News
science
ebooks
ebooksA celebration of British elections
Arts and Entertainment
No Offence
tvReview: No Offence has characters who are larger than life and yet somehow completely true to life at the same time spoiler alert
News
Chuck Norris pictured in 1996
people
Arts and Entertainment
Sarah Lucas, I SCREAM DADDIO, Installation View, British Pavilion 2015
artWhy Sarah Lucas is the perfect choice to represent British art at the Venice Biennale
News
A voter placing a ballot paper in the box at a polling station
i100
News
people
  • Get to the point
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

SThree: Trainee Recruitment Consultant - Swiss Banking and Finance

£20000 - £25000 per annum + Uncapped commission: SThree: Can you speak German,...

Ashdown Group: Marketing Executive - 6 month FTC - Central London

£25000 - £30000 per annum + benefits: Ashdown Group: An exciting opportunity f...

Ashdown Group: Junior Project Manager (website, web application) - Agile

£215 per day: Ashdown Group: Junior Project Manager (website, web application ...

Guru Careers: Software Engineer / Software Developer

£40-50K: Guru Careers: We are seeking an experienced Software Engineer / Softw...

Day In a Page

General Election 2015: Ed Miliband's unlikely journey from hapless geek to heart-throb

Miliband's unlikely journey from hapless geek to heart-throb

He was meant to be Labour's biggest handicap - but has become almost an asset
General Election 2015: A guide to the smaller parties, from the the National Health Action Party to the Church of the Militant Elvis Party

On the margins

From Militant Elvis to Women's Equality: a guide to the underdogs standing in the election
Amr Darrag: Ex-Muslim Brotherhood minister in exile still believes Egypt's military regime can be replaced with 'moderate' Islamic rule

'This is the battle of young Egypt for the future of our country'

Ex-Muslim Brotherhood minister Amr Darrag still believes the opposition can rid Egypt of its military regime and replace it with 'moderate' Islamic rule, he tells Robert Fisk
Why patients must rely less on doctors: Improving our own health is the 'blockbuster drug of the century'

Why patients must rely less on doctors

Improving our own health is the 'blockbuster drug of the century'
Sarah Lucas is the perfect artist to represent Britain at the Venice Biennale

Flesh in Venice

Sarah Lucas has filled the British pavilion at the Venice Biennale with slinky cats and casts of her female friends' private parts. It makes you proud to be a woman, says Karen Wright
11 best anti-ageing day creams

11 best anti-ageing day creams

Slow down the ageing process with one of these high-performance, hardworking anti-agers
Juventus 2 Real Madrid 1: Five things we learnt, including Iker Casillas is past it and Carlos Tevez remains effective

Juventus vs Real Madrid

Five things we learnt from the Italian's Champions League first leg win over the Spanish giants
Ashes 2015: Test series looks a lost cause for England... whoever takes over as ECB director of cricket

Ashes series looks a lost cause for England...

Whoever takes over as ECB director of cricket, says Stephen Brenkley
Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

Fishing is on Nigel Farage's mind

Ukip leader casts a line to the disaffected
Who is bombing whom in the Middle East? It's amazing they don't all hit each other

Who is bombing whom in the Middle East?

Robert Fisk untangles the countries and factions
China's influence on fashion: At the top of the game both creatively and commercially

China's influence on fashion

At the top of the game both creatively and commercially
Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

The man known as GOD has a reputation for getting the job done

Lord O'Donnell's three principles of rule
Rainbow shades: It's all bright on the night

Rainbow shades

It's all bright on the night
'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power