Oil, diamonds and groceries

Friday 24 December 2015

FTSE indices started today's shortened trading session marginally higher with oil majors and miners both boosted by price rises. 

“It has been a turbulent  year for oil companies but investors will be encouraged by a new OPEC report which predicts a sustained recovery in prices,” says AJ Bell Investment Director Russ Mould.

“Shell (LSE:RDSB) and BP (LSE:BP) were both up in early trading following the report which forecasts oil prices recovering to $70 a barrel by 2020, although OPEC isn’t the dominant player of old. The group now accounts for less than a third of world output compared with 50% in its heyday in the 1970s.

“It looks as though Paragon Diamonds' (LSE:PRG) shares will be delisted within days after it conceded that funding talks are unlikely to be successful before the year-end. But it plans to seek a relisting after a cash injection is secured.

“Supermarket giants Tesco (LSE:TSCO) and Sainsbury’s (LSE:SBRY) were among the biggest drags on the blue-chip board both near the bottom of the FTSE100 in early trading.”

These articles are for information purposes only and are not a personal recommendation or advice.