Gilts
Gilt prices rallied, tracking US Treasuries, which jumped after a solid auction of 30-year debt on Thursday eased worries about the country’s bumper budget deficit. The September gilt future rose 49p to £115.33, in line with bunds, halving losses from the previous session. The ten-year gilt yield fell two basis points to 3.98per cent.
Rumour of the day
Gulfsands Petroleum lost 6p to 183p after analysts returning from Syria to view its producing Khurbet East well said that any new discoveries there were factored into the shares. But some believe there is a good chance that Gulfsands will win an oil service contract from the Iraqi Government in the next couple of months in the latest round of tendering.
Deal of the day
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Synchronica, maker of software for mobiles, lost 0.13p to 3p as it said it was raising $4.7million in a share placing to help an unnamed partner finance production of a cut-price e-mailing phone for the developing world. Its broker, Finncap, said the partner was Brightstar Corporation. Finncap cut its revenue forecasts but said the shares still looked cheap.
Bet of the day
Copper has experienced a stunning rally in the week, bolstered by an increase in demand from China. July delivery hit a new eight-month high of $2.4575 per lb on the NY Merc Exchange on Thursday before retreating yesterday. With the dollar strengthening can the rally last? Spreadex has a July-based contract with a spread of $2.3815-$2.4115c.
Tiddler of the week
Chariot Oil & Gas was unchanged at 26p as it began a three-month joint seismic survey with Petrobras, its development partner on a 1,500sq km area of seabed off Namibia. Petrobas’s giant Tupi discovery off Brazil has very similar geology to Chariot’s block off Namibia, bolstering the hope that a similar field will be there.