Shares in Shell reached a historic high as oil prices remained strong above $90 amidst ongoing conflict in the Middle East.
The value of Britain’s most valuable company increased by 1.1%, or 28.5p, to 2750.5p, making it worth £183 billion.
Shell’s gains coincided with oil prices stabilizing above $90 a barrel after a 7.5% surge last week.
Interactive Investor’s head of investment, Victoria Scholar, commented, “The Israel-Hamas war caused a significant increase in oil prices last week, which could disrupt the path of inflation returning to normal levels.”
The demand for oil plummeted during the pandemic due to travel restrictions imposed by governments worldwide.
Record high: Shell shares rose 1.1% as the price of oil stabilised above $90 a barrel following a 7.5% surge last week
As a result, Shell’s share price hit a record low of 900p in October 2020.
Since then, the share price has tripled due to Russia’s invasion of Ukraine, which caused a surge in oil and gas prices.
Shell is now valued higher than Astrazeneca (£170 billion) and HSBC (£130 billion).
The FTSE 100 rose by 0.4%, or 31.03 points, to 7630.63, and the FTSE 250 increased by 0.4%, or 65.17 points, to 17519.39.
Energean, the mid-cap oil and gas company listed in London and Tel Aviv, had a volatile day with its shares surging by 6.8%, or 57.5p, to 907.5p.
Ocado, however, experienced a decline following a negative note from Barclays, which predicted that the online supermarket would miss its own forecasts in the medium term.
Stock Watch – Cerillion
Cerillion’s shares rose by 8% as the company projected higher profits.
In the first six months of its financial year ending September 30, Cerillion achieved record revenue and profit. This momentum continued into the second half, with the company expecting its annual profit to exceed analysts’ projections of £14.3 million.
Cerillion’s anticipated revenue stands at approximately £39 million.
Shares in Cerillion increased by 8%, or 85p, to 1145p.
According to talks with industry experts and their own analysis, Barclays downgraded Ocado’s stock to “underweight” from “equal-weight” due to potential roll-out delays and limited free cash flow.
Barclays also noted increased competition from Autostore, a Norwegian company involved in a legal battle with Ocado.
Consequently, Ocado’s shares dropped by 5.8%, or 30.8p, to 500p.
St James’s Place saw some relief as its shares rose by 5%.
The wealth management company had experienced a decline in share price when it announced plans to revamp its fee structure.
GSK is seeking approval from EU regulators for its drug dostarlimab, which targets severe endometrial cancer.
The European Medicines Agency has recommended the drug, with a final decision expected by the end of the year. GSK’s shares, however, fell by 1.1%, or 16.8p, to 1493.2p.
ITM Power, a green energy firm, experienced a surge of 3.3% as it set its sights on entering the US market, which it believes could become one of the largest markets for electrolysers.
Tristel, a disinfectant firm, saw its shares rise by 4.4% as CEO Paul Swinney expressed optimism about the company’s prospects, particularly its entry into North America.
Audioboom, on the other hand, saw a decline of 15.3% due to a slump in revenue in the first nine months of the year, driven by a weak advertising market.
Safestay purchased a freehold property in the center of Edinburgh for £4.3 million. The hostel chain plans to reopen the site next summer. Safestay previously sold a hostel in the city for £16 million in 2021.
Shares in Safestay rose by 2%, or 0.5p, to 25p.
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