MARKET REPORT: Ferrexpo eyes Black Sea despite Russia’s threats

Shares in Ferrexpo climbed as the Ukrainian iron ore miner set its sights on ramping up exports through the Black Sea.

Ships leaving the port of Odesa have been at risk of Russian attack since Moscow scrapped a deal that allowed the safe export of Ukrainian grain.

Kyiv has since opened a temporary corridor to allow vessels to come and go. But Russia has said it regards all cargo ships in the Black Sea bound for Ukraine as potential targets.

Ferrexpo chairman Lucio Genovese plans to resume exports via the route, and laid bare the ‘hugely challenging situation’ it has faced since Russia invaded Ukraine. This has ‘sharply reduced opportunities to ship significant product volumes to the Middle East and Asia,’ Genovese said.

Ferrexpo produces iron ore pellets. But only half its four pellet lines have been used due to the reduced export capacity.

Digging deep: Ferrexpo produces iron ore pellets, but only half its four pellet lines have been used due to the reduced export capacity

The group also said 34 employees have died in the conflict while 754 others are serving in Ukraine’s armed forces. Shares gained 6.6 per cent, or 5.55p, to close at 90.25p.

The London stock market shut early on the final trading day of the year as the FTSE 100 was up 0.1 per cent, or 10.5 points, to 7733.24 while the FTSE 250 fell 0.2 per cent, or 29.53 points, to 19,689.63.

While the top index has risen nearly 4 per cent in 2023, it has underperformed global peers with America’s S&P 500 and Germany’s Dax up by at least a fifth.

Oil prices recorded a first annual loss since 2020. Brent crude started the year at around $86, fell to $71 in June and peaked at nearly $97 three months later. Yesterday it was almost $78. BP rose 0.2 per cent, or 0.95p, to 466.15 and Shell by 0.9 per cent, or 22.5p, to 2571.5p.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said: ‘The price has whipsawed this year as expectations of sluggish demand, inventory build-ups and conflicts in key locations amalgamated into volatility.

‘The overall theme of the year though seems to indicate that heat has come out of the price for now but that can change at very short notice.’

Formerly known as National Express, Mobico gained 7.9 per cent, or 6.2p, to 84.6p after Northern Express Enterprises Limited disclosed a 3 per cent stake.

British American Tobacco made gains a day after it was slapped with a £100m fine for breaking competition rules.

Shares in the maker of Lucky Strike and Dunhill, which were flat on Thursday, rose 0.6 per cent, or 13p, to 2295.5p.

Also clawing back some losses was Sondrel. The chipmaker crashed 53.7 per cent on Thursday after it saying it needed more cash following a £1.7m contract delay.

But it shot up 29.3 per cent, or 1.1p, to 4.85p yesterday.

The son of the chairman who founded Naked Wines in 2008 has bought nearly £8,500 worth of shares in the firm.

Luke Gormley snapped up 14,392 shares in the online alcohol seller at almost 59p each, as the stock slid 3.5 per cent, or 2p, to 55p.

Saietta, which makes parts that can be fitted inside electric vehicles, has moved closer towards transitioning from a research and development company into large-scale manufacturing.

Its half-year results showed a slight increase in revenues while losses narrowed. Shares fell 2.8 per cent, or 0.5p, to 17.5p.

AIM-listed Duke Royalty, which provides funds to company owners to help them retain control of their business, expects to have made £6.3m of revenue in the three months to the end of December – 12 per cent higher than the same period last year. It rose 2.3 per cent, or 0.75p, to 33.25p.

This post first appeared on Dailymail.co.uk