Market Report: Leni climbs after announcing that its new Trinidad well is flowing successfully


Click to follow
The Independent Online

Leni Gas & Oil is on something of a hot streak.

One of serial Aim entrepreneur David Lenigas’ many outfits, the fossil fuel explorer kept the good news flowing, revealing that the second of its 30 new development wells in Trinidad is flowing successfully.

After breaking 2p for the first time in nearly three years on Monday, Leni continued to climb, up 0.47p at 2.51p. Shares have now doubled in just a week.

Away from Aim, weaker than expected eurozone inflation data and Chinese manufacturing numbers left the wider market underwater. Volume and sentiment were weak.

Mike McCudden, of Interactive Investor, said: “There is a real sense of calm before the storm. With the European Central Bank set to announce fresh monetary easing and expectations of up to 300,000 jobs being added to the US, we may be set for some extreme volatility returning to the markets.”

The FTSE 100 lost 27.80 points to 6836.3.

Plumbing and heating specialist Wolseley put on 53p to 3363p thanks to bullish forward-looking comments in its third quarter trading statement.

Boardroom moves were behind price changes at either end of the mid-cap index. Upmarket estate agent Foxtons lost 21.9p to 307.9p after boss Michael Brown announced he was stepping down, while interbroker dealer Tullett Prebon climbed 13.8p to 304p on reports that veteran chief executive Terry Smith could be heading for the exit. The news prompted Shore Capital to speculate that the company could be vulnerable to a takeover bid.

Cairn Energy continued its run of good form, with analysts cautiously optimistic. Test are being carried out at Cairn’s offshore Senegal site and Credit Suisse thinks the results could be “transformational”. Meanwhile, JPMorgan thinks the recent Indian election result could lead to a resolution of Cairn’s ongoing tax issue there. Cairn climbed 5.9p to 206.9p.

African focused oil and gas explorer Bowleven jumped 3.25p to 37p on Aim after reaching what chief executive Kevin Hart called a “key milestone”.