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ISEQ on a three-day winning streak

Friday, September 21 12:48:40

The ISEQ powered in to a three-day winning streak in morning trading today amid renewed investor confidence that the euro crisis is abating.

By 12:30, the index was up 26.63 points to 3,349.61.

European shares and the euro clawed back up and oil rebounded from a 1-1/2 month low as investors brushed aside the latest news of Britain's and Italy's economic and debt problems. Having ended three of the last four sessions in the red, the FTSEurofirst 300 was up 0.3 percent at mid-morning, a rise matched by the MSCI global index.

At home, shares in DCC climbed 37c to E22.20 after it said it has expanded its fuel distribution business in to the Benelux countries with a deal with BP worth E24.5m. The Irish diversified company said it has reached conditional agreement with BP to acquire BP Gas Nederland BV, BP's liquefied petroleum gas (LPG) distribution business in the Netherlands, together with the trade and assets of BP's smaller LPG distribution business in north Belgium. Completion of the acquisition is conditional on approval from the Netherlands Competition Authority and it is anticipated that the transaction will complete in late 2012, DCC said.

Dragon Oil shares dipped 1c to E7.62. Dragon announced on September 20th that the latest development well on the LAM field (Dragon:100pc) offshore Turkmenistan flowed at an initial rate of 1,420 bopd. Dragon also reported that it is considering converting a well in the field into a water injector. The flow rate from the latest development well is modest and should be contextualised, according to Davy. "Only the deeper zones at the well location are currently producing oil; oil was found in shallower zones as expected, but these zones are not currently in production. A decision to convert a well in the field to a water injector should increase, and possibly accelerate, an understanding of the implications of water injection in Dragon's fields offshore Turkmenistan. Water injection can sustain or grow production and reserves, and we estimate it can add over 100p to our 665p per share NAV."