Shell Reveals New Strategy

Investor still had one eye on an interest rate decision from the U.S. Federal Reserve, due later in the day, on Tuesday morning, but strength in the financial and commodity sectors helped to drive the FTSE 100 index into positive territory. Shortly before midday, the leading share index was up 16.37 points or 0.3% at 5,610.22 points, having closed down 0.6% on Monday.

Dominic Turner
shareprices.com - Tuesday, March 16, 2010

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Barclays

A lack of economic data meant that trading was light, but amongst banks Barclays was one of the best performers, rising 7.17p or 2.05% to 355.75p after Morgan Stanley raised its target price from 370p to 440p on the expectation of a £7 billion profit from its investment banking operation in the UK in 2011. Part-nationalised lender Royal Bank of Scotland was also going well, up 0.3p or 0.7% to 43.03p after unconfirmed reports that it is planning a debt buyback scheme as it seeks to rearrange its balance sheet.

Oil heavyweight Royal Dutch Shell revealed a strategy to increase so-called upstream production to 3.5 million barrels a day, or 11% more than at present, by 2012. The strategy includes a 15% reduction in refining capacity, a 35% reduction in retail petrol station markets and the shedding of 2,000 jobs by the end of 2011. Shell's share price rose 24p or 1.31% to 1,854p as a result.

At the other end of the market, security group G4S (formerly Group 4 Securicor) was down 8.9p or 3.19% to 269.7p despite reporting an increase of 10% in underlying earnings in 2009 to £500.3 million; the firm said that it expected organic growth in 2010 to be similar to that last year, however, leaving investors unimpressed.

 

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