MARKET REPORT: Hunting shares ensnared by falling vitality costs

Shares in British energy services firm Hunting crashed to a seven-month low as it warned the decline in oil and natural gas prices will hit profits.

The FTSE 250 group, which makes equipment for the energy industry as well as aerospace and defence, said ‘the recent decline in the oil price and renewed falls in US natural gas pricing’ have taken their toll.

It expects profits for this year of between £95million and £97million having previously pencilled in £103million to £106million.

Slump: Hunting, which makes equipment for the energy industry as well as aerospace and defence has been hit by a decline in oil and gas prices

The warning overshadowed a 16 per cent rise in third quarter profits to £67million and shares tumbled 16.5 per cent, or 61.5p, to 311.5p, hitting the lowest level since March.

Hunting shares had been on a good run earlier this year, rising 55 per cent to a peak of 459p in early August. 

But they are down sharply since then, wiping out much of this year’s gains, following a drop in the oil price from above $90 a barrel in April to less than $76 now.

Heading in the other direction among the mid-cap stocks was construction and regeneration group Morgan Sindall as it said full year profits would exceed its previous expectations.

The company said its Fit Out division, which carries out refurbishment work on offices and schools as well as offering interior design services, is booming.

Shares jumped 20 per cent, or 650p, to an all-time high of 3900p. The stock has more than doubled since the start of last year.

Stock Watch – Sosandar

Women’s fashion brand Sosandar reported a 27 per cent slide in first-half sales to £16.2million as it shifted away from heavy discounting.

Alongside cost-cutting, the move boosted margins and helped it trim losses to £700,000 in the six months to the end of September from £1.3m in the same period last year.

Sosandar said it ‘continues to benefit’ from partnership with the likes of Next and Marks & Spencer. Shares lost 4.7 per cent, or 0.5p, to 10.25p.

But there was little to cheer on the wider market, with the FTSE 100 index down for a third day in a row, falling 0.14 per cent, or 11.7 points, to 8306.54. The FTSE 250, however, inched up 0.21 per cent, or 43.05 points, to 20,949.65.

Holiday Inn owner InterContinental Hotels Group drifted lower as weak demand for rooms in China offset a more solid performance elsewhere.

The company said revenues per room were up 7.1 per cent in Continental Europe while they rose 6.5 per cent in East Asia & Pacific, 2.2 per cent in the UK and 1.7 per cent in the US. But they fell 10.3 per cent in China, sending shares down 1.7 per cent, or 148p, to 8714p.

Airlines fared better with Easyjet up 1.3 per cent, or 6.4p, to 514p and British Airways owner IAG rising 0.6 per cent, or 1.3p, to 215.4p, its highest level since 2021. 

Gold and silver miner Fresnillo made further gains, adding 2.9 per cent, or 21.5p, to 769p after the recent rally in the price of precious metals. 

Gold hovered close to the previous session’s all-time high of $2740 an ounce while silver was trading above $34 an ounce having reached that level for the first time in 12 years on Monday.

Pinewood Technologies – formerly called Pendragon before the sale of its car dealerships such as Stratstone and Evans Halshaw earlier this year – jumped higher after it secured a contract with dealership group Marshall Motor.

Shares in Pinewood, which specialises in software for car dealers, rose 14 per cent, or 40.5p, to 330.5p.

Semiconductor company Alphawave IP was also on the march, rising 20.8 per cent, or 20p, to 116.4p as investors welcomed a jump in quarterly bookings.