Beaufort Securities Breakfast Alert including: Rose Petroleum


(MENAFN- ProactiveInvestors) The Markets

Market opening: Markets are likely to open lower today. FTSE 100 futures were trading 36.0 points down at 7:00 am.

New York: Wall Street remained largely unchanged despite worse-than-expected US manufacturing data as the PMI report indicated significant expansion. The S&P 500 closed flat at 2058.20 on Friday.

Asia: Equities are trading mixed on disappointed ECB outlook poor manufacturing PMI reports and continued turmoil in oil prices. The Nikkei closed 0.2% lower while the Hang Seng was trading flat at 7:00 am.

Continental Europe: Markets closed lower on downcast ECB outlook and poor manufacturing PMI from Europe the US and China. France’s CAC 40 and Germany’s DAX contracted 0.5% and 0.4% respectively.

Crude Oil: On Friday Brent and WTI crude oil prices declined 1.6% and 1.1% respectively. The spread between the two varieties stood at US$3.7 per barrel.

UK small caps: The FTSE AIM All-Share index closed 0.81% higher on Friday at 707.71. 

Today’s news

Euro hits nine-year low as ECB prepares stimulus scheme

The euro fell to its weakest since 2006 against dollar amid speculations the ECB is moving towards a large-scale bond buying programme. Heightened concerns over Greece’s political situation also impacted the currency.

As per BRC UK retailers positive over 2015 prospects

According to a survey by the British Retail consortium 76% of the retailers expected improved sales in 2015 while 78% aimed to employ more people. Over two-thirds of the respondents anticipated an increase in investment.

Company News

Rose Petroleum (LON:ROSE) – Speculative Buy

On Friday Rose Petroleum announced that its wholly owned subsidiary VANE Minerals had signed an agreement to sell its 50% stake in Wate breccia pipe uranium project to EFR Arizone Strip. EFR is a subsidiary of Energy Fuels Inc. The total consideration for the sale is US$1.5m comprising of US$750000 cash and 2% production royalty (limited to a maximum of US$750000). The agreement is expected to be completed by 16th January 2015. Wate project is jointly owned by VANE and Uranium One Americas.

Our view: The sale of stake in the Wate project marks an important step in the divestment of Rose Petroleum’s uranium assets while focussing more on oil and gas and precious metals divisions. The recent acquisitions and farm-in agreements at the Mancos well and Paradox and Uinta basins are testimony to the fact that there is a deliberate shift towards oil and gas projects as they continue to gain momentum. The company seeks to create higher values from its extensive mining portfolio especially the porphyry exploration programme in Mexico with proceeds from the sale. Thus in view of the above we are confident that the company is on the right growth track. We retain our Speculative Buy rating on the stock.

Economic News

Germany manufacturing PMI

As per the data released by Markit on Friday the final manufacturing PMI of Germany for December rose to 51.2 ahead of the November reading of 49.5. The reading came in line with the economists’ forecast of an unchanged flash reading.

Eurozone manufacturing PMI

Manufacturing PMI for the Eurozone stood at 50.6 in December below the flash estimate of 50.8 yet above the November reading of 50.1 data from Markit Economics showed on Friday. Market expected the reading to remain unchanged from the flash estimates.

UK mortgage approvals

Mortgage approvals fell to 59029 home loans a 17-month low in November following a reading of 59511 in October the Bank of England said on Friday. Economists were expecting approvals to drop to 58700.

UK manufacturing PMI

UK manufacturing PMI dropped to 52.5 in December from 53.3 in November data from the Markit Economics and Chartered Institute of Purchasing & Supply showed Friday. The reading came below the market forecast of 53.6.

US manufacturing PMI

The US Markit manufacturing PMI stood at 53.9 in December slightly higher than the flash reading of 53.7 but lower than 54.8 in November.

ISM manufacturing

Manufacturing PMI in the US fell to 55.5 in December from a high of 58.7 in November the Institute of Supply Management (ISM) reported on Friday. The reading missed economists’ expectation of 57.6 for December. The ISM prices paid index slid to 38.5 from 44.5 in the previous month.


Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.