BP and Shell slip on falling oil prices

Weaker oil prices hit FTSE 100 giants hard as BP (BP.) declined by 2% and Royal Dutch Shell (RDSB) nudged 1.2% lower.

Big banks Royal Bank of Scotland (RBS) and HSBC (HSBA) were also among the top blue chip fallers, contributing to a 0.6% slump on the blue chip index.

In the US, both stock markets opened lower as Trump’s protectionist stance in his inauguration speech on Friday spooked the market.

In Asia, Shanghai’s SSE Composite and Hong Kong’s Hang Seng index were up, but Japan’s Nikkei 225 closed 1.3% down at 18,891 due to weakness in pharma and finance stocks.

FTSE 100 RISERS AND FALLERS

Paddy Power Betfair (PPB) shrugged off adverse sports results in late 2016 as full year earnings will come in at the mid-point of its previously guided £390m to £405m EBITDA range. It posted losses as punters cleaned up with the US election result and unfavourable football scores.

Stockbroker Davy said it is confident that earnings forecasts for 2017 will have to be revised upwards as the year progresses as it believes prospects are good in Europe and Australia.

FTSE 250 RISERS AND FALLERS

Housebuilder Bovis (BVS) rallied 2.8% on media speculation that its shareholder Schroders suggested a takeover by rival Berkeley (BKG).

Silver producer Hochschild Mining (HOC) announced its Pallancata mine in Peru will restart on Wednesday after resolving an issue with the local community. Metals production stopped in December after a road blockade by locals who wanted to renegotiate land access agreements.

Troubles in its healthcare arm forced filters manufacturer Essentra (ESNT) to warn operating profit will either hit or fall slightly short of the bottom end of its previously downgraded £137m to £142m guidance for 2016. The company issued two profit warnings last year.

Higher production helped to offset a flat diamond price and delay in starting a new processing plant at miner Petra Diamonds (PDL).

SMALL CAP RISERS AND FALLERS

Specialty chemical business HaiKe (HAIK) announced it expects profit for the year to 31 December to be considerably ahead compared to 2015, causing its share price to jump 187.6% to 35.9p.

Investors raised a glass to bio-control products provider Eden Research (EDEN) after it received authorisation in France for its 3AEY product for use in the prevention and treatment of grape rot in wine grapes. Shares in the firm catapulted 33.3% to 13.5p.

Rig refurbishment and construction specialist Lamprell (LAM) slipped 7% lower as revenue in 2017 was expected to be at the lower end of its guidance of $400m to $500m.

Edenville Energy (EDL) announced a strategic partnership with Sinohydro Corporation of China for its Rukwa coal to power project, causing its shares to soar by nearly 50%.

A profit warning and dividend cut pushed Braemar Shipping (BMS) 16.4% lower to 245p. Weakness in the oil and gas sectors worsened and the company struggled with a minor issue with market activity in its logistics arm.

Story provided by StockMarketWire.com

Merryn

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