London’s FTSE 100 reversed 24.2 points to 7,343.25 on Monday with investors spooked by the attack on Saudi oil facilities and flocking to safer havens such as gold. Markets were also weak across other parts of Europe and Asia where investors reacted in a similar manner to the oil price spike and how it might fuel inflation.
In corporate news, Tullow Oil (TLW) gushed 9.9% higher to 244.3p on news the oil and gas explorer has discovered more oil offshore Guyana at the Joe-1 exploration well. ‘Joe is the first oil discovery to be made in the Upper Tertiary and de-risks the petroleum system in the west of the Orinduik block, where a significant number of Tertiary and Cretaceous age prospects have been identified,’ the company said.
Alfa Financial Software (ALFA) tumbled 24.1% to 71p after coughing up an earnings alert. The UK asset and consumer finance industry software supplier warned 2019 full year profit is expected to be ‘significantly below’ previous expectations amid project delays and challenging market conditions.
Indebted Petra Diamonds (PDL) cheapened 5.8% to 7.6p on poor full year results showing revenue down 6% to US$463.6m amid challenging diamond market conditions and losses widening thanks to hefty asset write-downs.
Elsewhere, fishing tackle and equipment retailer Angling Direct (ANG:AIM) jumped 5.8% higher to 64p after reporting exceptional summer trading, generating 13.3% like-for-like sales growth in-store and 26.7% growth online between June and the end of August.
Cake, bread and morning goods maker Finsbury Food (FIF:AIM) fattened up 8.4% to 71p on robust full year results showing a 203% surge in pre-tax profit to £13.6m and a 6.1% dividend hike to 3.5p.
Investors also welcomed a confident outlook statement, with Finsbury Food insisting the core business continues to perform well with ‘strong quarter one growth to date, outperforming Finsbury’s respective markets’.
Avon Rubber (AVON) rose 30p or 1.8% to £17.1 after the gas masks-to-dairy equipment maker expressed confidence in achieving full year sales and pre-tax profit expectations following a solid second half.
Mask contract awards with the US Department of Defense and the acquisition of 3M’s ballistic protection business have ‘significantly strengthened our medium-term outlook’, insisted CEO Paul McDonald, leaving Avon Rubber ‘well positioned to deliver further growth’, both organically and through acquisitions, ‘in 2020 and beyond’.
Communications and radio frequency technology play MTI Wireless Edge (MWE:AIM) was marked up 6.8% to 31.5p after bagging a contract - with an initial order valued at around US$1m - for the supply of Hi-Power Microwave Terminations to an Israeli customer over the next 16 months.
Lithium concentrate developer Savannah Resources (SAV:AIM) slumped 33% to 2.05p on the dilution arising from a £5m fundraise at a discounted 2p a share to help develop its Mina do Barroso project in Portugal.
