Oil excites TD customers as FTSE breaks 6,000
Darren Hepworth, Trading and Customer Services Director, TD Waterhouse comments: "The markets surged on the first day of trading in 2011 as the FTSE 100 broke through the 6,000 barrier, closing on 4 January up 114 points at 6,014 - a 30 month high. TD Waterhouse customers entered 2011 with a particular focus on their financials, miners and oil explorers with oil stocks providing over 50% of the total top ten buy and sell trades this week.
Oil explorers ignite
"We began the year with the bankers pipped from the top spots by Desire Petroleum (DES), Gulf Keystone Petroleum (GKP), Xcite Energy (XEL) and BP (BP). Desire Petroleum commenced the year at the top of both the buys and the sells tables with the news that drilling at its 25/5-1 well on the Dawn prospect in the North Falkland Basin had reached its target depth but had not found any significant hydrocarbons. Its shares closed down over 20% at 37.25p, from its year end price of 47.75p.
"Shares in BP moved up 27.35p to 492.9p as it transpired that Shell had considered a bid for the oil giant during the Mexico oil spill disaster. In addition, news that not all of the compensation fund of US$20bn may be used, also helped strengthen the shares as TD customers decided it was a good time to sell out of the stock as it recovered by over 60% since the low last year.
"Oil and gas explorer investor, Parkmead Group (PMG), entered the buys table in fourth place with the company announcing that it will be reopening old wells and utilising modern technology to mitigate those which were uneconomic in the 1970s. The firm's management has a strong track record in the sector, which includes Tom Cross who built up Dana Petroleum, and has already announced it has deals lined up for 2011.
Resources rock
"Meanwhile Ortac Resources Ltd (OTC), the precious metals minnow, entered the buys and sells tables at ninth and tenth respectively, as the shares rose to 2.45p in anticipation of a positive statement regarding its Kremnica gold project in Slovakia. Fellow aim listed Amur Minerals (AMR) was also a popular trade amongst our customers as the nickel and copper miner's shares hit a 52 week high at 22.25p during trading on 4 January."