Sector movers: Oilers support FTSE as Libya conflict sparks crude high
By Oliver Haill
Date: Monday 08 Apr 2019
(Sharecast News) - Oil stocks led the way on Monday, but London equity markets were largely flattened off by other factors.
Brent crude futures edged closer to $71 per barrel, the highest since November, lifting BP and Shell and a host of sector service providers.
Oil prices are being supported by a variety of factors, including Opec reducing output, US sanctions against Venezuela and Iran, and the newest factor being conflict in Libya as the UN-backed government televised its intent to send troops to push back against East-Libyan General Haftar's advance towards the capital.
"While disruptions in Libya would be significant, prices have now reached levels at which OPEC+ may want to rethink their current restrictive output agreement," said commodity analysts at TD Securities.
"Saudi, which has been shouldering more than its fair share of the cuts, may see any further disruptions as an opportunity to open up the taps, lest prices surge to levels that would incentivize a boost in non-conventional production. For now, however, Saudi has yet to show signs that they are letting up on their aggressive supply management tactics, as the Kingdom further increased their OSP to the US, likely in an attempt to sway imports of its crude."
TD suggested these forces could conspire to send crude prices temporarily higher.
Among the sectors in the red zone, automobiles was being dragged down by Aston Martin after Deutsche Bank lost faith in the luxury carmaker and performed a sharp handbrake turn, downgrading its rating to 'hold' from 'buy' after halving the share price target to 1000p. "With muted demand momentum forecast in the short term, but increasing fixed costs already, due to St Athan ramping up, we see a risk to earnings in 2019," analysts said.
Construction was in the red, led by Kier, while health care was dragged down by the ever volatile NMC Health.
Top performing sectors so far today
Technology Hardware & Equipment 1,148.38 +1.39%
Oil Equipment, Services & Distribution 11,580.60 +1.33%
Oil & Gas Producers 9,369.32 +1.07%
Leisure Goods 7,971.38 +1.01%
Mining 21,014.10 +0.49%
Bottom performing sectors so far today
Automobiles & Parts 6,321.64 -4.04%
Construction & Materials 5,857.31 -1.28%
Health Care Equipment & Services 6,924.96 -1.24%
General Retailers 2,261.24 -1.03%
Industrial Transportation 2,264.64 -0.91%
Market Movers
FTSE 100 (UKX) 7,447.71 0.01%
FTSE 250 (MCX) 19,521.43 -0.09%
techMARK (TASX) 3,567.70 0.07%
FTSE 100 - Risers
Antofagasta (ANTO) 1,004.00p 1.19%
BP (BP.) 575.10p 1.14%
Ocado Group (OCDO) 1,406.00p 1.08%
Royal Dutch Shell 'A' (RDSA) 2,500.00p 0.99%
Lloyds Banking Group (LLOY) 62.81p 0.96%
Royal Dutch Shell 'B' (RDSB) 2,520.35p 0.94%
Rio Tinto (RIO) 4,706.50p 0.90%
Anglo American (AAL) 2,202.00p 0.80%
Royal Bank of Scotland Group (RBS) 253.50p 0.72%
Smurfit Kappa Group (SKG) 2,378.00p 0.59%
FTSE 100 - Fallers
NMC Health (NMC) 2,427.00p -3.92%
Just Eat (JE.) 748.60p -2.96%
Paddy Power Betfair (PPB) 6,152.00p -1.88%
Rolls-Royce Holdings (RR.) 911.00p -1.70%
WPP (WPP) 855.40p -1.57%
Hargreaves Lansdown (HL.) 2,025.00p -1.56%
Melrose Industries (MRO) 190.10p -1.40%
CRH (CRH) 2,495.00p -1.38%
London Stock Exchange Group (LSE) 4,876.00p -1.38%
TUI AG Reg Shs (DI) (TUI) 738.20p -1.34%
FTSE 250 - Risers
Indivior (INDV) 105.25p 6.14%
Bakkavor Group (BAKK) 131.60p 3.95%
Premier Oil (PMO) 104.00p 3.74%
Sirius Minerals (SXX) 21.78p 3.71%
FirstGroup (FGP) 95.45p 3.19%
888 Holdings (888) 161.90p 3.19%
OneSavings Bank (OSB) 412.00p 3.00%
Ferrexpo (FXPO) 287.30p 2.61%
Energean Oil & Gas (ENOG) 787.80p 2.58%
Hilton Food Group (HFG) 944.00p 2.39%
FTSE 250 - Fallers
Saga (SAGA) 60.50p -9.02%
Aston Martin Lagonda Global Holdings (AML) 942.99p -7.13%
Senior (SNR) 220.00p -5.98%
Kier Group (KIE) 343.59p -4.56%
Redrow (RDW) 626.50p -3.30%
Civitas Social Housing (CSH) 86.43p -3.00%
Mediclinic International (MDC) 313.60p -2.40%
Dixons Carphone (DC.) 140.45p -2.33%
Royal Mail (RMG) 248.80p -2.24%
Amigo Holdings (AMGO) 213.00p -1.84%
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