AFX Europe (Focus): London shares lower in opening deals as Shell spooks with new reserve fears: “Leading shares opened the session under pressure, weighed down by new concerns over oil heavyweight Shell and the continuing slump in the dollar, dealers said.”: “Shell weighed on the index after the oil major announced it is to delay its next annual shareholders meeting - and with it the vote on its proposed structural changes - to June from April because of ongoing uncertainty about further revisions to its reserves estimates”: “The latest bad news from Shell sent its shares down…”(ShellNews.net) 26 Nov 04
Nov 26, 2004
LONDON (AFX) - Leading shares opened the session under pressure, weighed down by new concerns over oil heavyweight Shell and the continuing slump in the dollar, dealers said.
At 8.15 am, the FTSE 100 was 14.6 lower at 4,738.8, having given up some of yesterday's 34 point gains as investors took profits on a quiet news day on both sides of the Atlantic.
With the US shut for Thanksgiving yesterday and only open for a half day today, investors will also look to Asia for inspiration.
The Nikkei 225 index ended the day down 66.59 points at 10,833.75, while at midday the Hang Seng was 40.09 points higher at 13,966.70.
Meanwhile, back in London, Shell weighed on the index after the oil major announced it is to delay its next annual shareholders meeting - and with it the vote on its proposed structural changes - to June from April because of ongoing uncertainty about further revisions to its reserves estimates.
Shell said a review announced on Oct 28 of its oil and gas reserves is continuing and is on schedule and should be finished by the end of the year.
But it added that any further revision may require the restatement of previous financial statements, which could delay publication of its results.
The latest bad news from Shell sent its shares down 3-1/4 pence at 445, with BP 3-1/3 lower at 544, further hit by the dip in oil prices.
Companies with heavy exposure to the US also suffered as the dollar's relentless decline saw the euro break through the 1.33 usd level in Asian trade.
The weakness saw Capita down 2-1/2 at 354-1/2, Pearson was also 2-1/2 lower at 625-1/2, while Diageo eased 1-1/2 at 740-1/2. rn/tc