Another choppy week. PoO continues to trade in a very tight range which is causing some sideways and drift action amongst many stocks in the sector. In theory, every week that passes is another week closer to a rebalance. For the moment, all eyes are still firmly on OPEC and compliance numbers. Last reported numbers were approx 91% but recent reports suggest some NON-OPEC players have been slipping in some extra production. It’s unclear whether this includes Russia but it’s clearly something to monitor closely over the next few weeks.
Miners have been doing well of late and Gold in particular continues to move higher. As mentioned last week, Gold is likely to be the ‘go-to’ hedge/insurance policy for many investors looking to managing risk ahead of Brexit and Euro elections in France and Germany.
It’s all change in week 8. The sharehub slips from top spot to last spot mainly due to some hefty corrections on PMO, Tullow and Faroe. All have dropped by over 10% and in PMO’s case, it’s closer to 25%. The latter had to issue a market notice on the share price performance as jitters kicked in around the cohesive nature of the current reneged debt deal. CB holders have yet to agree to lock in terms and it could be late May before the full restructure is complete. I think it’s very likely that PMO will get the restructure away but May is a long way off at the moment and the share price is falling victim to usual market antics as various traders and hedges seek to short the stock due to remaining uncertainties.
Week 8 Results below: