(Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Friday.
----------
FTSE 100 - WINNERS
----------
Imperial Brands, up 1.1%. British American Tobacco, up 1.8%. On Thursday, the US Food & Drug Administration said cartridge-based e-cigarettes in flavours other than tobacco or menthol will become illegal unless specifically authorised by the government. In September, the White House had promised a full ban, amid an outbreak of severe pulmonary disease that has killed seven people and sickened hundreds, but this was scuppered by industry pressure. The move was welcomed by BAT, which on Friday said the new ruling provides clarity and is expected to return the US vapour market to stability, following a period of "disruption and uncertainty".
----------
FTSE 100 - LOSERS
----------
London Stock Exchange, down 1.1%. China has temporarily blocked the stock link between the Shanghai and London stock exchanges over political tensions, Reuters reported on Thursday. The Shanghai-London Stock Connect scheme allows companies listed on the London Stock Exchange - owned by London Stock Exchange Group - to sell their shares on China's Shanghai Stock Exchange, and vice versa. It started operating last year. The five sources who spoke to Reuters all cited politics as the reason for the suspension, with two blaming Britain's stance on the Hong Kong protests and one noting "remarks over the detention of a now former staff member at its consulate in Hong Kong".
----------
OTHER MAIN MARKET AND AIM - WINNERS
----------
Craven House, up 8.1%. The investment company's subsidiary Craven House Capital North America has agreed to a loan from LM Funding America. The loan agreement will see LMFA lend CRVNA USD1.5 million, which will be used to provide liquidity for investment purposes. The loan will act as an advance on the USD3.6 million convertible loan repayment owed to CRVNA from LMFA. CRVNA has agreed to extend the maturity of the loan owed to it by LMFA to April 15, 2021 from January 16 this year. The USD1.5 million borrowed by CRVNA is repayable on April 15 this year, with interest payable at a rate of 6% per annum. It can be repaid in cash or 640,000 shares in LMFA from CRVNA to LMFA.
----------
Eco (Atlantic) Oil & Gas, up 7.4%. The exploration company commented on the oil discovery made at the Carapa-1 well in offshore Guyana and its potential meaning for the adjacent Orinduik block. Carapa-1 is located in the Kanuku block, off the coast of Guyana, and is directly in board of Orinduik, in which Eco Atlantic holds a 15% working interest. On Thursday, Tullow Oil said early results from drilling at the Carapa-1 well suggest the finding of oil in Upper Cretaceous sandstones. However, the four metres of oil at Kanuku was less than expected. Eco Atlantic Chief Operating Officer Colin Kinley said: "The Carapa discovery is very important to us technically and confirms our thinking on prospectivity on our Orinduik block. The existence of a good oil grade unaffected by sulphur in board of us is excellent news."
----------
OTHER MAIN MARKET AND AIM - LOSERS
----------
Tri-Star Resources, down 56%. The mineral processing company said negotiations for the funding of its investment in Strategic & Precious Metals Processing - in which Tri-Star has 40% stake - are continuing but the company is unhappy with the terms currently offered. SPMP is currently seeking further financing to up production at its Oman facility, which is targeting 100% capacity by the end of 2020. In order to achieve this, SPMP has determined it will need to raise USD160 million of working capital, which includes USD60 million for building up inventories and continued investment to meet current debt obligations. The company noted SPMP is currently in technical default of its current banking facility with Bank Nizwa and Al Aziz Bank, as SPMP was unable to meet its most recent repayment obligation. Tri-Star said short term funding from shareholders is expected to "remedy" the default.
----------
By Evelina Grecenko; evelinagrecenko@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
