Gilts
The appeal of safe-haven government assets was heightened after the release of weak US services sector data. Gilts rallied to their highest in more than a week. The March long gilt future was up 78 ticks at 111.06, broadly in line with bunds. There was strong demand for a £2.5 billion new issue of ten-year gilts, with 1.92 times the offer being bid in cash.
Rumour of the day
Hardy Oil & Gas, the Indian oil and gas explorer, which is to transfer from AIM to the main list in a few days, rose 24p to a new high of 534p. There was talk of a bid from Eni, of Italy, but other market sources had heard that a positive drilling update from India was on the way in the next few days. Hardy has already made several discoveries in India.
Deal of the day
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Shares in Cranswick, the premium sausage maker, fell 25p to 560p, despite news that the directors had spent £195,000 buying shares at 629p after last week’s profit warning. The price fell from 850p amid fears that a pig shortage in Britain will dramatically raise the price of pork. Cranswick also gave warning that poultry and beef costs were rising.
Bet of the day
GlaxoSmithKline reports full-year figures tomorrow. The shares have fallen from £13.85 three weeks ago to £11.61 yesterday as investors fret over a delay approving its Cervarix cervical cancer vaccine in the United States. Can the results turn the share price around? Capital Spreads quotes a rolling contract with no expiry of £11.75.4 to £11.77.6.
Tiddler to watch
Gulf Sands Petroleum rose 10¼p to 175¼p after it and Emerald Energy, up 7¾p at 218¾p, declared 66 million barrels of proved and probable oil reserves at their jointly owned Syrian field, with production by the end of the year. Seymour Pierce has a 246p target on Gulf Sands, while Evolution raised its Emerald target to 420p.