Markets: Tullow takeover talk boosts Bowleven

By DOMINIC JEFF
Published on 07/07/2012 00:00

SHARES in Edinburgh-based oil and gas explorer Bowleven jumped 20 per cent yesterday as rumours linked it to a takeover by larger rival Tullow.

Bowleven, whose portfolio is centred on West Africa, has been the subject of takeover chatter before, but its shares had lost more than half their value since soaring on the back of a reported approach by Dragon Oil in February. Yesterday they advanced 12.25p to 70.75p.

Most other oil stocks suffered alongside the mining sector after disappointing US job creation figures and downbeat comments from IMF head Christine Lagarde added to fears over the global economy. Tullow Oil was down 11p at 1,465p.

Colin Cieszynski, senior analyst at CMC Markets, said: “A combination of US dollar strength and concern that weak economies in China, Europe and the US could further crimp resource demand means commodities have been falling back.”

The FTSE 100 Index closed 30 points or 0.5 per cent lower at 5,662.6 with heavily-weighted miners among the biggest fallers. Kazakhmys was down 4.3 per cent at 725p and Rio Tinto dropped 2.8 per cent to 3,069p. Glasgow-based engineering firm Weir Group was dragged into the rout, shedding 4.2 per cent at 1,547p. Defensive stocks dominated the risers’ board, with SSE near the top after gaining 1.6 per cent to 1,416p

NEW YORK: Wall Street fell last night as another month of tepid US jobs growth underlined fears the economy was stalling, though not to the point that would make more stimulus from the Federal Reserve imminent.

The Dow Jones industrial average was down 124.43 points, or 0.96 per cent, at 12,772.24 by the close while the broader Standard & Poor’s 500 Index closed down 12.89 points, or 0.94 per cent, at 1,354.69.