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Today’s market overview

Equities have leapt out of the blocks this morning following news of Larry Summers’ withdrawal as a candidate for the next chairman of the Federal Reserve, something The Trader Dominic Picarda is pretty happy about. 

IC TIP UPDATES:

Sirius Minerals (SXX) has confirmed its adjusted plans for submission of its planning application for a proposed potash mine in the North York Moors National Park. Sirius will now pull together all the elements such as the mine itself, transport and pipelines to consider the overal environmental impact. The first elements of this will be submitted for consideration by next July.

Genel Energy (GENL) reports that its Norwegian partner DNO International has begun extensive testing of the Tawke-23 well in Kurdistan, which will further extend the hugely prospective Tawke field. Buy.

Trap Oil (TRAP) has informed investors that the production problems on the Athena field which had previously been notified, have not yet been rectified and are unlikely to be sorted out until the fourth quarter. Production has been reduced by 1,400 barrels a day as a result to 7,500 bopd, of which 1,125 bopd is net to Trap. Our recommendation is under review.

Leyshon Resources’ (LRL) financial figures today reveal little, given that the business is still in exploration mode on its Zijinshan gas project in China. But the company confirmed that plans to demerge its energy assets, including the China gas interests, from its minerals mining businesses is well under way and the new business will seek an Aim listing. Buy.

CLS Holdings (CLI) has confirmed the acquisition of a portfolio of 34 properties for a total of £118.6m. The majority of the properties are rented out to the government or government agencies and the portfolio brings in £15.1m in annual rent. We keep our buy rating on CLS.

KEY STORIES:

Vedanta Resources (VED) has appointed former Rio Tinto chief executive Tom Albanese as chairman of its subsidiary Vedanta Resources Holdings.

French Connection (FCCN) has reduced losses marginally to £6.1m in the half year to July as the team appointed to turn around the business begin to see some results. Revenues dropped by 6.4 per cent, due to weakness in wholesale and the UK/Europe business. Like for like sales were 4.5 per cent lower but this was partly driven by a conscious decision to shorten the sales period and sell more clothes at full margin.

Petra Diamonds (PDL) enjoyed a 27 per cent hike in revenues in the year to June and a 36 per cent rise in adjusted pre-tax profits to $122.4m. This was primarily driven by a 21 per cent increase in production over the year with the company predicting a further 12 per cent increase in the current year.

Petrofac (PFC) has been awarded a $120m contract for the operation and management of two training facilities for the staff of Malaysian national oil giant Petronas.

OTHER COMPANY NEWS:

San Leon Energy (SLE) confirms that the first fracturing of its oil interests in Poland. Fraccing at Lewino-1G2 produced a ‘small, consistent flow of burnable gas’ which was described as ‘very encouraging’ by the company and at Rogity-1 the fraccing also produced a ‘highly encouraging’ flow.

Airline FlyBe (FLYB) has made some management changes as it looks to accelerate its reorganisation. Three senior managers left on Friday as a result of the decision to amalgamate the two divisions, FlyBe UK and FlyBe outsourcing solutions, into one structure.

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