London midday: Slick gains from oil companies

21st Sep 2010 12:04

Footsie has recovered its poise after taking a bit of a knock following disturbing public sector borrowing figures. The measure of public sector net borrowing came in at £15.302bn, up from £14.1bn in August last year, and well ahead of forecasts of £12.51bn.Cairn Energy is the best performer after an update of drilling in Greenland. It abandoned one well but added that the presence of both oil and gas confirms an active, working petroleum system in the basin and is extremely encouraging at this very early stage. In the FTSE 250, it is oil services group Wellstream that is hogging the limelight. The shares are sharply higher after it confirmed a number of takeover approaches. It made the statement after a steady rise in its share price recently. Shares in the group have risen by a third since the start of July following more encouraging trading news and appreciation of its presence in the fast developing oil prospects offshore Brazil. Fellow oil services group Wood Group climbs in sympathy.Even further down the oily pole, AIM-listed explorer Nautical Petroleum is climbing fast after another big find in the Central North Sea.Online betting exchange Betfair must think the recent rally is sustainable. It is to take a punt on the market's appetite for new issues and float in London. No pricing details accompanied the statement, but reports recently have suggested the group wants a valuation of up to £1.5bn. It does not intend to issue any new shares as part of the offer.Elsewhere in the online betting world Sportingbet is the latest gaming firm to settle with the US Department of Justice over illegal internet gambling, clearing the way for it to take part in the wave of industry consolidation currently underway. Sticking with the sporting theme, retailer JD Sports saw underlying profits before tax surge 36.5% to £19.39m in the 26 weeks to 31 July from £14.2m. Revenue grew 18.5% to £383.9m from £324m. Like for like (LFL) sales rose by 2.8% in the UK and Ireland. The shares fall back on the figures, having shot up yesterday by 13.36%, but rival sportswear retailer Sports Direct, which has an 11.9% stake in JD Sports, moves ahead.Outsourcing giant Serco said King's College Hospital NHS Foundation Trust has joined GSTS Pathology, the joint venture between Guy's & St Thomas's NHS Foundation Trust and Serco. GSTS Pathology has been awarded a ten-year contract valued at around £300m, starting October 2010, as the principal provider of pathology for King's.The cruise operator Carnival, due to report third quarter results later today, was a strong riser yesterday, but is less buoyant today.Kazakhstan-based mining titan Eurasian National Resources (ENRC) has taken full control of Brazilian company Bahia Minerals BV (BMBV) with the purchase of Zamin BV's 50% stake for $670m in cash.Farnham-based Biocompatibles International says that it has received a "prelimnary approach" which could lead to an offer for the medical technology company .FTSE 100 - RisersCairn Energy (CNE) 439.00p +2.86%Vedanta Resources (VED) 2,197.00p +2.04%Diageo (DGE) 1,113.00p +1.92%Lloyds Banking Group (LLOY) 78.62p +1.56%Barclays (BARC) 317.60p +1.36%3i Group (III) 287.30p +1.34%Standard Chartered (STAN) 1,921.50p +1.24%Invensys (ISYS) 291.10p +1.18%BG Group (BG.) 1,127.00p +1.17%Burberry Group (BRBY) 953.00p +1.17%FTSE 100 - FallersCarnival (CCL) 2,440.00p -1.97%Essar Energy (ESSR) 450.50p -1.81%Eurasian Natural Resources (ENRC) 899.00p -1.69%Scottish & Southern Energy (SSE) 1,135.00p -1.39%Aggreko (AGK) 1,572.00p -1.13%Centrica (CNA) 337.20p -1.11%Legal & General Group (LGEN) 100.60p -0.98%Man Group (EMG) 225.20p -0.92%Randgold Resources (RRS) 6,380.00p -0.85%African Barrick Gold (ABG) 594.50p -0.75%FTSE 250 - RisersWellstream Holdings (WSM) 774.00p +27.09%John Wood Group (WG.) 413.30p +5.81%Ashtead Group (AHT) 103.50p +3.29%Inchcape (INCH) 303.20p +3.23%Sports Direct International (SPD) 130.20p +3.17%FTSE 250 - FallersSt. Modwen Properties (SMP) 164.00p -3.07%F&C Commercial Property Trust (FCPT) 96.00p -3.03%Kenmare Resources (KMR) 19.83p -2.79%