THE TIPSTER
INVESTMENT management company Ashmore Group releases its trading update tomorrow. It was recently recommended as a “buy” by KBC Peel Hunt as it should benefit from continued allocation of investment funds to emerging markets and European corporate credit markets. Ashmore’s shares have risen 10 per cent since then, but are still 2 per cent down for the year. The 272p level should provide resistance to the upside again, with support at 250p. A break of the 272p area should see 290p as the next target. Spread Co offers a spread on Ashmore Group of 266.2p–267.1p.
BP’s share price has finally found support around 300p and is back above its 20-day moving average. The firm is apparently trying to dispose of assets to help with the clean-up bill from the Gulf of Mexico oil spill, including selling its stake in the Alaskan oil fields. This concerted action comes alongside hopes that the relief well being drilled in the Gulf of Mexico will be successful in allowing it to cap the leak in August and return to a degree of normality. A successful cap could allow the share price to continue its recent strength. Capital Spreads quotes a price of 389.3p-390.0p.
Cable took a double whammy yesterday as, firstly, UBS came out with a sell recommendation, citing seven different reasons to sell sterling with a target of $1.400. This was followed in the afternoon by a warning from S&P that the UK government debt burden may approach a level incomparable with a triple-A rating. This warning has eroded confidence in the currency and could continue to do so in the coming months. Sterling-dollar has found resistance from former support around $1.5074, so look to sell on approaches to this level. Spread Co offers a spread on sterling-dollar of $1.5014-$1.5017.