Tullow hit as oil prices slide to latest low
TULLOW Oil shares plunged nearly 8pc yesterday, after the company was hit by a tumbling oil price and negative commentary from Nomura.
In a note to clients, Nomura analysts said there was little prospect of Tullow being a takeover target in the near term while it also cited a maritime dispute between Ivory Coast and Ghana. Tullow's Jubilee Field is located off the Ghana coast. The bearish note from Nomura came even as Tullow rectified a fault at Jubilee that hurt oil production.
Tullow's problems came as the ISEQ Overall Index posted its worst fall in a month. The index dropped 1.4pc, or 95.23 points, to close at 6,608.15.
The bourse had been on the up for six of its previous seven sessions.
The market was led lower by FBD, as the insurer plunged 4.1pc to close at €7.08. The firm has lost nearly 25pc of its value since it lost chief executive Andrew Langford last month. Analysts at Goodbody Stockbrokers have also noted the likelihood that FBD's capital reserves may not be enough to hit its Solvency II requirements if it exits its property and leisure business, as seems likely.
Glanbia fell 3.6pc to €18.25, coming back from recent highs. Ryanair followed a similar pattern. The airline fell 1.5pc to close at €12.83. Another to fall back was CRH. The construction materials firm fell 2.1pc to close at €27.51.
On the other side of the board, the big mover was Hibernia REIT. The property firm added 1.5pc to hit €1.34 after peer Kennedy Wilson Europe released strong half-year results. Green REIT rose 0.4pc to reach €1.57. The troubles in Ireland were reflected across Europe. The Stoxx Europe 600 dipped 0.8pc. The FTSE 100 and CAC 40 were flat. The DAX Index fell 0.4pc.