MARKET REPORT: Fracking shares fall as Rishi reimposes ban

Fracking stocks slipped into the red as a ban on onshore shale gas drilling looked set to return.

In his first appearance at Prime Minister’s Questions yesterday, Rishi Sunak pledged to back the Conservative party’s manifesto pledge to impose a moratorium on fracking over fears it causes minor earthquakes.

During the 2019 general election campaign, the Tories pledged not to support fracking “unless the science shows conclusively that it can be done safely”. But before being replaced by Sunak, Liz Truss planned to change tactics.

Such a move now looks less likely – a blow to the shares of land-based fracking companies.

When Sunak reneged on his predecessor’s promise to lift the ban, he is divisive Egdon Resources fell 11.9 percent, or 0.4 points, to 2.95 points IGas Energy fell by 27.4 percent, or 10.8 points, to 28.6 points.

IGas Energy chairman Chris Hopkinson said: “If true, it is a slap in the face for the millions of people dealing with the energy and cost of living crisis in Britain.

“Another government reversal risks driving away investment. If the UK decides to abandon shale, it seems that the UK is no longer the place to grow or boost or help hardworking people with their electricity bills or even to cut emissions. Instead, we will now be tied to expensive, dirty LNG imports from Qatar.”

After the cabinet of a single prime minister was assembled, Chancellor Jeremy Hunt postponed the Halloween financial statement, which was due to take place on October 31, to November 17.

Hargreaves Lansdown analyst Suzanne Streeter said: “Investors will remember that the unnecessary rush to announce a big tax cut has caused such tumultuous times for the Trus administration, and now they crave caution and stability.”

Pharmaceuticals giant AstraZeneca rose 2.9 percent, or 281p, to 10,034p after clinical trials of its drugs Capivasertib and Faslodex showed a “statistically significant and clinically meaningful improvement” in breast cancer patients’ survival.

Markets reacted positively FTSE100 increasing by 0.6 percent or 42.59 points to 7056.07 and FTSE250 rising 1.5 percent or 274.26 points to 18,105.89.

Sterling also rose, topping $1.16 for the first time in more than six weeks. Advertising group VES said its global clients continue to spend on marketing despite a cocktail of economic challenges.

STOCK HOURS: RWS

Shares in RWS rose after the language services group ended the year on a strong footing. The company, which employs language specialists around the world to translate niche documents such as patient reports for pharmaceutical companies, said revenue rose 8 percent in the 12 months to the end of September. This happened despite a decrease in demand among some customers. RWS said it expects to meet its 2023 targets. Shares soared 11.9 percent, or 33 pence, to 309.4 pence.

Revenue for the three months to the end of September was £3.6bn, up 10.3 per cent on the same period a year earlier.

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

Energy engineer rose 5.8 percent, or 76p, to 1,397p after the company said it could start selling gas from the Karish field off Israel’s coast to customers within days.

A pharmaceutical giant AstraZeneca rose 2.9 per cent, or 281p, to 10,034p after clinical trials of its drugs Capivasertib and Faslodex showed a “statistically significant and clinically meaningful improvement” in survival for breast cancer patients.

Miner Fresnillo rose 4.3 percent, or 30.8 pence, to 745 pence after the company said it expected to complete testing at its new Juanicipió mine by the end of this month. The group maintained its silver guidance for this year and 2023.

The owner of a medium capitalization The capital and districts rose 1.9 per cent, or 2p, to 104.9p after the company said its £3.5bn megamerger with rival Shaftesbury (up 2.1 per cent, or 7.6p, to 365.8 pence) should be completed in the first quarter of next year.

The deal, which is being closely scrutinized by the competition watchdog, would bring locations including Chinatown, Carnaby Street and Covent Garden under the control of one company.