MARKET REPORT: Fracking stocks rocket as drilling ban is lifted

Fracking stocks skyrocketed after the ban on onshore drilling for shale gas was lifted.

As the war in Ukraine continues, Economy Minister Jacob Rees-Mogg said strengthening energy security is an “absolute priority.”

He added: ‘To get there we need to explore all the avenues available to us through solar, wind, oil and gas production, so it’s good that we’ve lifted the pause to explore potential sources of domestic gas. realize.’

The cabinet expects that more than 100 new licenses for oil and gas extraction will be granted. A moratorium was put in place in 2019 over fears that fracking caused small earthquakes or tremors.

With the ban lifted, shares in Egdon Resources rose 14.2 percent, or 0.9p, to 7.25p, while Igas Energy rose 10 percent, or 7.8p, to 85.8p.

Igas Interim Executive Chairman Chris Hopkinson said: ‘Developing shale gas assets has the potential to provide safe and affordable energy for the UK in the short term, decoupling the UK from the volatile and competitive international gas markets.’

Charles McAllister, of UK Onshore Oil and Gas, said the news provided a path for the UK to become an energy exporter by 2040, after its lowest energy output in more than 50 years in 2021.

As central banks around the world rush to tackle rising inflation, the FTSE 100 fell 1.08 percent or 78.12 points to 7159.52 and the FTSE 250 fell 2.05 percent or 382.98 points to 18,331,69.

Ahead of Chancellor Kwasi Kwarteng’s mini-emergency budget today, the Bank of England raised interest rates by 0.5 percentage points to a 14-year high of 2.25 percent, just a day after the US Federal Reserve announced an increase of 0.1%. 75 percentage points had ushered in.

Stock Watch – Ceres Power

Ceres Power fell after saying most of its revenue from its China business would not come until next year.

While the fuel cell developer expects its joint ventures in the country to be signed this year, they are unlikely to be approved before early 2023.

It means it won’t get about half of the £30 million license fee revenue from the companies it expected in 2022. It now expects its full-year earnings to be lower than last year.

Shares fell 15.8 percent, or 74.9p, to 400p.

Meanwhile, the Bank of Japan intervened for the first time since 1998 to boost its currency.

In London, mining giant Glencore led the way after JP Morgan raised its price target from 590p from 640p. It rose 0.8 percent, or 4p, to 490p.

Rio Tinto rose 2.3 percent or 108p to 4828p while Antofagasta fell 0.2 percent or 2p to 1108p as metal prices, including copper, rose.

Shares in pharmaceutical giant AstraZeneca fell 1.6 percent, or 156p, to 9934p, even though the drug was approved by Chinese regulators to treat ovarian cancer.

Sainsbury’s came a step closer to selling and then leasing back 18 stores to property investor LXi Real Estate Investment Trust for £500 million.

LXi meets with investors because the purchase can only happen if it raises money. Sainsbury’s rose 0.5 percent or 0.9p to 195.7p, but LXi fell 6.5 percent or 9.2p to 131.8p.

At Segro, Chief Operating Officer Andy Gulliford said he plans to retire next year after nearly ten years in his role and 18 years with the warehouse giant. It fell 5.3 percent, or 44.8 pence, to 805 pence.

Despite a positive update, Halma fell 3.9 percent, or 83p, to 2025p, ahead of its November half-year results.

The safety equipment maker maintained its outlook for the year for sales and profits, helped by a weaker pound.

PZ Cussons, maker of Imperial Leather soap, reported a 1.7 percent drop in sales to £592.8 million for the year ended May 31, while profits fell 2.9 percent to £66.6 million.

Nevertheless, the first quarter has ‘started well’. It rose 2.1 percent, or 4p, to 199.2p.

Aston Martin fell 9.6 percent, or 15.9p, to 149.2p. Kepler Cheuvreux analyst Thomas Besson said the luxury car maker is still too much in debt despite efforts to raise money.

Gaming software group Playtech fell 10.2 percent, or 48.2p, to 425.8p after warning it faces disruption as the war continues in Ukraine, where it has more than 700 employees.

For the six months to the end of June, it reported sales up 73 percent to £691 million, with a profit of 64 percent to £178 million.