Market Report: Sir Frank Chapman in the money but sell-off hits BG price - Sharewatch - Business - The Independent

Market Report: Sir Frank Chapman in the money but sell-off hits BG price

 

Pocketing £4.7m is not bad going by anyone's standards. That is how much Sir Frank Chapman has netted after the BG boss decided to cash in a chunk of shares, news of which left the blue-chip energy explorer among the worst fallers on the top-tier index yesterday.

The company was knocked back 59.5p to 1,224p following the revelation that its chief executive got rid of nearly 370,000 shares earlier in the week, selling them off at an average of 1,285p each. While by no means all of his stake – he still holds over 1.5 million shares – traders highlighted the lack of explanation for the sale, suggesting the reaction would have been better if the Square Mile had been given a reason.

Sir Frank, who is among the longest-serving Footsie bosses but plans to step down next year, will be wishing he had sold up a couple of months earlier. Back in March, before BG fell sharply along with the rest of the market, the stock reached 1,547p, meaning he could have earned himself nearly an extra £1m. Still, he may also point out that when he took the job back in 2000 the stock was less than a quarter of where it trades now.

BG was clearly in the mood for selling – it also announced it had struck a deal to get rid of its stake in two Philippines power plants for $360m (£231m). The group had agreed a sale of the business nearly two years ago which subsequently fell through.

It was not a good session for the oil companies in general as a sharp drop in the price of black gold weighed on the sector, with Tullow Oil dropping 49p to 1,427p and BP 8.55p lower at 398.3p.

It was the same story across the City as a torrent of bad news from the eurozone left the FTSE 100 93.86 points weaker at 5,297.28, while disappointing housing data from the States did not help. At the same time the heavyweight diggers were left deep in the red amid growing despondency over the likelihood of the Chinese government giving a major boost to the country's economy.

Another depressing factor was the fact a number of stocks were trading ex-dividend, including Marks & Spencer. The high street institution dipped 12.8p to 332.2p despite analysts from ING removing their "sell" advice, saying they welcomed the recent decision by M&S to cut back on its spending plans.

There were only six risers, with Severn Trent in the gold medal spot. The water utility – which has recently been boosted by takeover speculation – gushed up 42p to 1,706p after its full-year results beat the City's forecasts.

Arm Holdings edged 1p higher to 508.5p, with the chip designer helped by bullish comments late on Tuesday from customer Apple's boss Tim Cook on the tech giant's future plans.

Meanwhile, the decision by Dell to supply microservers using Arm's technology alongside those powered by chips from bitter rival Intel was being applauded by the Square Mile, with some suggesting this could result in extra annual sales of as much as $36m. At the same time, UBS's Gareth Jenkins was pointing out he believed further cash returns were likely from the chip designer.

Down on the FTSE 250, reports that a group of Indian ministers have recommended that coal blocks allocated to Essar Energy should get the green light saw the power giant spark up 25.5p to 141.8p. However, it was quick to say it believed the final decision would be taken by the Indian cabinet and that no official notification had been received yet.

Centamin was in demand. A revised development plan for its Sukari mine in Egypt saw the gold digger tick up 2.5p to 64.25p, with Bank of America Merrill Lynch reiterating its "buy" advice.

While Booker's deal to buy wholesaler Makro saw the cash and carry firm jump 7.9p to 87p, it was not the only purchase to receive a positive reaction.

On Aim, the environmental support services company Silverdell saw its shares lifted by 1p to 11.12p after saying that its £15m acquisition of EDS Group would be "transformational".

In the wake of talk that Maxim Barsky is rejoining TNK-BP as an adviser, having resigned as deputy chief executive of the Anglo-Russian group last year, dealers were highlighting vague speculation recently that it could be a step on the way to him taking the top job.

This, they suggested, may not be too promising for driller Matra Petroleum (0.12p worse off at 2.42p) of whom Mr Barsky recently became boss, although others have talked down the possibility of him getting the top job at TNK-BP.

Suggested Topics
News
Paper trail: the wedding photograph found in the rubble after 9/11 – it took Elizabeth Keefe 13 years to find the people in it
newsWho are the people in this photo? It took Elizabeth Stringer Keefe 13 years to find out
Arts and Entertainment
Evil eye: Douglas Adams in 'mad genius' pose
booksNew biography sheds light on comic genius of Douglas Adams
Sport
FootballFull debuts don't come much more stylish than those on show here
News
i100
PROMOTED VIDEO
Life and Style
Kim Kardashian drawn backlash over her sexy swimsuit selfie, called 'disgusting' and 'nasty'
fashionCritics say magazine only pays attention to fashion trends among rich, white women
Arts and Entertainment
TVShows like Agents of S.H.I.E.L.D are little more than marketing tools
Arts and Entertainment
Hit the roof: hot-tub cinema east London
architectureFrom pools to football pitches, rooftop living is looking up
Travel
travel
News
The ecological reconstruction of Ikrandraco avatar is shown in this illustration courtesy of Chuang Zhao. Scientists on September 11, 2014 announced the discovery of fossils in China of a type of flying reptile called a pterosaur that lived 120 millions years ago and so closely resembled those creatures from the 2009 film, Avatar that they named it after them.
SCIENCE
Life and Style
tech
News
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
Matisse: The Cut-Outs exhibition attracted 562,000 visitors to the Tate Modern from April to September
art
Life and Style
Models walk the runway at the Tom Ford show during London Fashion Week Spring Summer 2015
fashionLondon Fashion Week 2014
News
Kenny G
news
News
peopleThe black actress has claimed police mistook her for a prostitute when she kissed her white husband
Life and Style
techIndian model comes with cricket scores baked in
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

SQL Developer - Watford/NW London - £280 - £320 p/d - 6 months

£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Senior BA - Insurance **URGENT**

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

Training Coordinator / Resource Planner - City, London

£35000 - £38000 per annum + Benefits: Ashdown Group: Training Coordinator / Pl...

Data Governance Manager (Solvency II) – Contract – Up to £450 daily rate, 6 month (may go Permanent)

£400 - £450 Per Day: Clearwater People Solutions Ltd: We are currently looking...

Day In a Page

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
'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

Exclusive extract from Janis Winehouse's poignant new memoir
Is this the role to win Cumberbatch an Oscar?

Is this the role to win Cumberbatch an Oscar?

The Imitation Game, film review
England and Roy Hodgson take a joint step towards redemption in Basel

England and Hodgson take a joint step towards redemption

Welbeck double puts England on the road to Euro 2016
Relatives fight over Vivian Maier’s rare photos

Relatives fight over Vivian Maier’s rare photos

Pictures removed from public view as courts decide ownership
‘Fashion has to be fun. It’s a big business, not a cure for cancer’

‘Fashion has to be fun. It’s a big business, not a cure for cancer’

Donatella Versace at New York Fashion Week