Business Irish

Wednesday 21 November 2018

Providence Resources surges on farm-out

Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York
Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York
Donal O'Donovan

Donal O'Donovan

Providence Resources was a big mover in Dublin yesterday. Shares in the oil explorer have more than doubled from last Wednesday's 6.8 cent close on the back of the company confirmation on Thursday that it had signed an exclusivity agreement with an unnamed partner to develop the potentially huge Barryroe offshore field.

The stock closed at 16 cents a share yesterday, up 68pc in the session as investors returning from the Christmas break absorbed the development.

Overall the Iseq was up 0.23pc at 7,054.55.

Elsewhere, European stocks faltered at the start of the trading year on Tuesday as car stocks fell and strength in the euro weighed, while trading was cautious ahead of the launch of a major reform of European Union financial markets.

The pan-European STOXX 600 index dipped 0.2pc. Car makers were under pressure after new car sales data in France showed a 0.51pc drop in December and the share of new diesel cars dipped below 50pc for the first time since 2000.

A report in Britain's 'Daily Telegraph' said UK car registrations data, due out on Friday, would show a 5pc decline.

More broadly, trading volumes in European equities remained muted as traders came back from holidays and ahead of the launch of new rules for the region's financial markets.

In other eye-catching moves, Lufthansa slipped 1.4pc after British Airways owner IAG agreed to buy Air Berlin's insolvent Austrian airline Niki.

The German carrier had backed out of a deal to buy Niki's assets last month.

Crisis-hit, Germany-listed South African retailer Steinhoff's shares surged 10pc. The company also said its internal review of accounting irregularities was progressing.

Irish Independent

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