Energy Stocks Globally Rise on Unrest in Africa
World equity markets were mixed Monday as company news dictated trading direction in many nations, while oil stocks gained on renewed unrest in Africa.
U.S. financial markets were closed for the Presidents Day holiday, leading to lean volumes on many exchanges.
Energy stocks rose in tandem with higher crude prices in London trading. The weekend kidnapping of nine foreign workers and pipeline attacks Monday in Nigeria -- Africa’s largest oil producer -- fueled further supply worries.
BP, Royal Dutch Shell and Total all rose as Brent crude oil futures climbed $1.47 to $61.36 a barrel in London trade.
“The Nigerian problem is driving oil prices -- it’s a pure security question,” said Matt Mason, an investment advisor with Redmayne-Bentley Stockbrokers. “If the posturing over Iran continues, then we will see oil prices go the same way again.”
In Europe, the German DAX Xetra 30 index dipped 0.03% to 5,794, the French CAC 40 index lost 0.4% to 4,980 and Britain’s FTSE 100 index added 0.3% to 5,863.
In Asia, Japan’s Nikkei 225 index fell 275.52 points, or 1.75%, to 15,437.93 on the Tokyo Stock Exchange.
Sony shares plunged 3.6% to $44.85 after a Merrill Lynch report late last week cast doubt on the launch date for the electronics maker’s PlayStation 3. The report highlighted market rumors about a delay in the sales start, which Sony has promised for spring 2006.
Internet services company Softbank -- a favorite among retail stock players -- also dropped, shedding 6% to 3,270 yen ($27.67).
Livedoor stock plummeted 22% to 68 yen (58 cents) on reports that the scandal-plagued Internet services company may soon be delisted. In January, the company’s former chief executive was arrested on charges of securities laws violations.
German drug maker Schering added 3.1% after announcing that fourth-quarter profit rose 17% to 139 million euros ($166 million), topping analyst forecasts.
The company also said it would exercise its right to buy manufacturing facilities from Emeryville, Calif.-based Chiron.
The facilities are used to make Schering’s Betaferon multiple sclerosis medication. Schering pays royalties and costs to Chiron for producing the drug. Analysts have estimated Schering may have to pay as much as 1 billion euros ($1.19 billion) for the purchase.
London Stock Exchange shares gained 0.7% to close at 829.5 pence ($14.47) after Macquarie Bank effectively dropped its takeover bid.
The Australian bank said it would not increase its 1.5-billion pound ($2.6-billion) offer or extend the deadline for acceptances. Macquarie’s bid values the bourse at 580 pence ($10.08) a share.
In Hong Kong, shares ended higher Monday, led by a rally in property stocks.
The blue-chip Hang Seng index rose 122.98 points, or 0.8%, to 15,598.67. The index rose 0.2% on Friday.
Cheung Kong (Holdings) rallied 2.2% after news that tycoon Li Ka-shing bought 6.62 million of the company’s shares last week, raising his stake to 38.49%.
