MARKET REPORT: Fracking stocks tumble as Rishi reimposes ban

Fracking stocks sank in the red as the onshore shale gas ban appeared to be returning.

In his first appearance at the prime minister’s questions yesterday, Rishi Sunak pledged to stick to the Conservative Party’s commitment to impose a moratorium on fracking over fears it could trigger small earthquakes.

The Tories promised during the 2019 general election campaign that they would not support fracking “unless science categorically shows it can be done safely.” But before she was replaced by Sunak, Liz Truss had changed course.

Such a move now seems less likely – hitting stocks in onshore fracking companies.

As Sunak reneged on his predecessor’s promise to lift the ban, Egdon Resources fell 11.9 percent, or 0.4p, to 2.95p and iGas energy crashed 27.4 percent, or 10.8p, to 28.6p.

IGas Energy Chairman Chris Hopkinson said: ‘If this is true, then it is a slap in the face to the millions of people dealing with Britain’s energy and cost of living crisis.

Another government turnaround threatens to drive investment away. If the UK decides to turn its back on shale, it would appear that the UK will no longer be the place to grow or level up or help hard-working people with their energy bills or even cut emissions. Instead, we are now stuck with expensive, dirty imports of LNG from Qatar.’

Now that the prime minister’s unity cabinet has been assembled, Chancellor Jeremy Hunt has reversed the Halloween tax declaration, due Oct. 31, to Nov. 17.

Hargreaves Lansdown analyst Susannah Streeter said: “Investors are aware that it was the unnecessary rush to announce major tax cuts that caused such tumultuous times for the Truss administration and what they now crave is prudence and stability.”

Pharmaceutical giant AstraZeneca gained 2.9 percent, or 281p, to 10034p after clinical trials of its Capivasertib and Faslodex drugs showed a ‘statistically significant and clinically meaningful improvement’ in breast cancer patient survival

The markets reacted positively with the FTSE100 rose 0.6 percent or 42.59 points, at 7056.07 and the FTSE250 rising 1.5 percent or 274.26 points to 18105.89.

Sterling was also on the rise, hitting $1.16 for the first time in over six weeks. Ad group WPP said its global clients are continuing to market despite a cocktail of economic woes.

STOCK: RWS

The RWS share rose after the language services group closed the year strongly. The company, which employs language specialists around the world to translate niche documents such as patient reports for pharmaceutical companies, said revenues were up 8 percent in the 12 months to the end of September. This came despite declining demand from some of its customers. RWS said it expects to meet its 2023 targets. Shares rose 11.9 percent, or 33p, to 309.4p

Turnover in the three months to the end of September stood at £3.6bn, up 10.3 percent from the same period a year earlier.

But the company, which won contracts from Nestle and Samsung during the period, warned that the rising costs of doing business, including higher wages, could weigh on profits. Shares fell 1 percent, or 7.6 pence, to 762 pence.

energetic rose 5.8 percent, or 76p, to 1397p after it said it could start selling gas from the Karish field off Israel’s coast to its customers within days.

Pharmaceutical giant AstraZeneca gained 2.9 percent, or 281p, to 10034p after clinical trials of the Capivasertib and Faslodex drugs showed a “statistically significant and clinically meaningful improvement” in breast cancer patient survival.

Miner Fresnillo shot up 4.3 percent or 30.8 pence to 745 pence after it said it expects tests on its new Juanicipio mine to be completed by the end of this month. The group maintained its silver production guidelines for this year and 2023.

Mid cap host Capital and provinces rose 1.9 percent, or 2p, to 104.9p after it said the £3.5 billion mega merger with rival Shaftesbury (2.1 percent, or 7.6p, to 365.8p), in the first quarter of should be completed next year.

The deal, which is under investigation by the competition watchdog, would bring locations such as Chinatown, Carnaby Street and Covent Garden under the control of one company.