Business
Stocks, Oils, Defensives Lift FTSE … S&P Cuts Hit Banks
Britain’s FTSE 100 rose on Monday in choppy trade as gains in oils and defensives outpaced falls in banks, after Standard & Poors ratings agency cut its credit ratings for nine euro zone countries.
London’s blue chip index was up 10.51 points, or 0.2 per cent at 5,647.15 , in light volumes.
Traders said that S&P’s downgrades were well flagged, and with some losses already incurred on Friday, investors had time to position themselves ahead of the announcement.
The downgrades included France and left investors worried the euro zone’s bailout fund EFSF might lose its AAA rating with S&P, reducing its ability to help countries in distress.
Meanwhile, negotiations between Greece and private creditors on a debt swap deal broke down, raising the risk of a messy Greek default.
UBS said the downgrades could have been worse with France only losing one notch on its rating, while Germany emerged unscathed with its triple-A rating and a stable outlook.
Jimmy Yates, head of equities at CMC Markets, said: “The downgrades were well flagged but Greece’s slide towards default leaves serious question marks over the ratings for some of the banks, given their exposure to the region.”
Banks were the hardest hit sector with Royal Bank of Scotland and Lloyds Banking Group down 0.9 per cent and 1.9 per cent, respectively.
Espirito Santo said despite the sector’s cheapness — the european banking index trades at 0.6 times tangible net asset value — and central banks flooding the market with cheap cash, it is too early to be outright bulls on the sector.
“The core problem of sovereign insolvency has not been addressed … (and) we must negotiate years of deleveraging before we can hope to see the sector’s earnings move up positively,” the broker says.
Espirito favours the investment banks due to a lower-than-expected impact on revenues and profits from deleveraging going forward, with UK-listed Barclays among its top picks.
The biggest single faller on the FTSE 100 was Carnival, the owner of the cruise ship that capsized off Italy’s west coast.
The company’s shares dropped 17.6 per cent after it estimated the impact to 2012 earnings for loss of use alone to be around 90 dollars million.
Traders said Natixis and Morgan Stanley both cut their ratings for the cruise operator.
Kingfisher, Europe’s biggest home improvements retailer, shed 1.5 percent as Citigroup downgrades the firm to “neutral” from “buy”.
Integrated oils, which have taken on defensive characteristics — reliable dividends, earnings growth, strong balance sheets — as the outlook for the global economy has darkened, were higher.
The sector rose with the price of oil, which gained on supply worries after Iran warned Gulf Arab neighbours of consequences if they raised oil output to replace Iranian barrels facing international sanctions.
Higher oil prices translate into higher margins for energy groups.
Royal Dutch Shell added 1.2 per cent, while BG Group rose one per cent as Cheuvreux upped its rating to selected list from “outperform”.
Nkpemenyie Mcdominic
Reports say that the training is designed to equip youths with practical technical skills for employment in the oil and gas and construction sectors, with emphasis on employability, safety, competence and self reliance.
In attendance at the flag-off ceremony this week, at the Petroleum Training Institute (PTI) Conference Hall, Effurun, were stakeholders, dignitaries, and political representatives, among others.
Dafinone, represented by his Chief of Staff, Adelabu Bodjor, said the initiative reflects a deliberate political investment in human capital development across Delta Central.
He explained that the training focuses on rigging and scaffolding, noting that “both are essential technical competencies required in industrial operations, construction projects, and oil and gas installations”.
Bodjor added, “The programme is intended to reduce dependency among youths by providing job-ready skills capable of supporting long-term economic opportunities and self-sufficiency. The initiative aligns with Senator Dafinone’s broader development agenda, which prioritises practical skill acquisition as a pathway to sustainable empowerment.”
Also addressing the participants, the NCDMB, Felix Omatsola Ogbe, represented by Mr. Teddy Bai, commended Dafinone for sponsoring the programme, describing it as “a timely response to critical manpower gaps in the industry”.
Bai explained that rigging and scaffolding remain safety-sensitive skills required across fabrication yards, offshore platforms, and construction sites, stressing that the programme bridges the gap between certification and practical competence.
He also charged the training consultant, OROH Contractors Limited, to maintain strict standards of professionalism, safety, and discipline, while urging participants to remain committed, focused, and disciplined throughout the exercise.
The Senate Liaison Officer for Sapele Local Government Area, Chief Patrick Akamuvba, , described the programme as a major step in strengthening human capital development in Delta Central.
Akamuvba said scaffolding and rigging skills are in high demand across residential, commercial, and industrial construction projects, noting that the training offers real employment opportunities for beneficiaries
He urged participants to prioritise knowledge and certification over short-term material expectations, stressing that discipline and seriousness would determine their long-term success.
He also cautioned youths against social vices and distractions, advising them to remain focused to maximise the opportunities provided by the programme.
