MARKET TALK: Seymour Pierce Downgrades BP To Hold From Buy

17th Jun 2010 08:17

0717 GMT [Dow Jones] Seymour Pierce downgrades BP (BP.LN) to hold from buy. Notes BP has cancelled its 1Q dividend, will not declare a dividend in respect of 2Q and 3Q, and will consider the resumption of dividend payments at the time of 4Q results in early 2011. Says given the market will have to wait until 1Q '11 for guidance on this dividend, it is hard to see why the shares will do better than perform in line with the wider market. "Whilst BP continues to emphasize its financial strength, the message is not entirely consistent with that promulgated at the recent investor conference call. Indeed, the company is now talking about a significant shrinking of organic capital expenditure." However, shares +6.8% at 361p, after a sharp selloff. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 17, 2010 03:17 ET (07:17 GMT)