MARKET TALK: BP Shrs Gain As UK PM, Banks Roused To Speak Up

11th Jun 2010 09:14

0814 GMT [Dow Jones] BP (BP.LN) shares +5.2% at 385p, at the top of the FTSE 100, recouping some of their recent losses. A trader says reports that UK Prime Minister David Cameron is poised to weigh in with political support are helping. The trader says Cameron seems to want to imply the UK government will defend BP should US political rhetoric remain threatening and potentially damaging. The trader also says several brokerage notes have recently done a more detailed "guesstimate" of the potential costs and damages from the Gulf of Mexico oil spill and even under extreme scenarios, brokerages suggest the shares are substantially oversold and offer value. The trader adds that in the UK at least, there has been no significant short selling, so Friday's rise does not appear to be based on short-covering. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 11, 2010 04:14 ET (08:14 GMT)