Centamin shares rise on gold prices, director dealing

Centamin shares surged Friday as gold prices improved and a director acquired a further stake in the Egypt-focused miner.

Centamin shares surged Friday as gold prices improved and a director acquired a further stake in the Egypt-focused miner.

The price of gold received a boost following the strong selling pressure seen earlier in the week. The yellow metal had been trading near steady levels just ahead of the release of surprisingly weak US payroll figures Friday afternoon.

June Comex gold last traded up $11.50 at $1,563.90 an ounce. Spot gold was last quoted up $9.60 at $1,563.75.

The market learned that Mark Bankes, Non Executive Director, on Friday bought 30,000 shares in Centamin at a price of 42.92p, bringing his total holding to 120,000.

Shares were also shooting up after hitting a nine-month low Thursday, which had seen the shares enter so-called 'oversold' territory.

The above also came on the heels of a downgrade yesterday from analysts at Canaccord Genuity, who lowered their rating from 'buy' to 'sell'.

"Although financial results released last week were relatively strong the key decision on the validity of the Sukari mining license is fairly distant," the broker said.

"The Egyptian judicial system continues to be affected by political instability and we now expect the final court ruling to take around 12 months to be released. This puts a lid on the upside and creates room for potential negative news flow and media speculation during 2013," Canaccord added.

Last week Centamin announced a 30% rise in full-year gold production which helped push pre-tax profit up to $198.6m from $194m previously.

Recommended

Three top-notch Asian stocks to buy
Share tips

Three top-notch Asian stocks to buy

Professional investors Adrian Lim and Pruksa Iamthongthong, managers of the Asia Dragon Trust, pick three of their favourite Asian stocks to buy now.
23 Sep 2022
Why you should short this satellite broadband company
Trading

Why you should short this satellite broadband company

With an ill-considered business plan, satellite broadband company AST SpaceMobile is doomed to failure, says Matthew Partridge. Here's how to short th…
23 Sep 2022
Share tips of the week – 23 September
Share tips

Share tips of the week – 23 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
23 Sep 2022
Momentum investing – and why price matters more than anything else
Investment strategy

Momentum investing – and why price matters more than anything else

The recent fashion for momentum investing, with investors piling into expensive growth stocks, is nothing new, says Merryn Somerset Webb. And the dang…
21 Sep 2022

Most Popular

Beating inflation takes more luck than skill – but are we about to get lucky?
Inflation

Beating inflation takes more luck than skill – but are we about to get lucky?

The US Federal Reserve managed to beat inflation in the 1980s. But much of that was down to pure luck. Thankfully, says Merryn Somerset Webb, the Bank…
26 Sep 2022
Earn 4.1% from the best savings accounts
Savings

Earn 4.1% from the best savings accounts

With inflation topping 10%, your savings won't keep pace with the rising cost of living. But you can at least slow the rate at which your money is los…
27 Sep 2022
The pick of this year's best-performing investment trusts
Investment trusts

The pick of this year's best-performing investment trusts

Market conditions haven’t been easy, but these investment trusts have delivered strong growth, says David Stevenson.
23 Sep 2022