FTSE100 closes up as small cap oilers gush higher

IGAS Energy inflated 24.59% to 19p and Egdon Resources lifted 21.74% to 10.50p

The London skyline
FTSE100 closed higher on Tuesday

FTSE100 finished higher on Tuesday and small caps also did well as European indices and US shares went higher.

FTSE100 closed 1.35% higher at 6,219 and the FTSE AIM All share added 0.32% to 733.130 and the FTSE AIM 100 closed 0.53% ahead at 3,446.

Miners were the laggards. Fresnillo (LON:FRES) dropped 3.34% to 1,041p and Randgold Resources (LON:RRS) dropped 3.21% to stand at 5,885p. The biggest gainer was supermarket supertanker Tesco (LON:TSCO), up 6.81% to stand at 171p.

In focus today were small-cap oil & gas companies with fracking ambitions after a UK council approved a rival's bid to use the controversial technique.

IGAS Energy (LON:IGAS) inflated 24.59% to 19p and Egdon Resources (LON:EDR) lifted 21.74% to 10.50p as North Yorkshire County Council planners approved Third Energy’s application to frack at Kirby Misperton.

It is the first time in over five years that a UK fracking project has got the go-ahead, following suspension of Cuadrilla’s operations near Blackpool, which caused earth tremors.

Energy experts held out the prospect that others could follow in its footsteps.

Michael Bradshaw at Warwick Business School said: “What we have seen, first in Lancashire, and now in North Yorkshire, is bound to be repeated elsewhere and with growing frequency.

“It seems Nottinghamshire may be the next venue as IGas is considering its options.

“Given its current strong support for shale gas development, the UK Government is not likely to declare a moratorium any time soon.”

Traders also shrugged off figures showing that the UK borrowed £76bn in 2015/16 to cover its deficit, £4bn more than initially reported.

Halfords PLC (LON:HFD) pumped up 3.17% to 446p , after buying online premium bike and accessory retailers Tredz Limited and Wheelies Direct Limited.

But Card Factory PLC (LON:CARD) was down 2.62% to 371p after an overall reduction in footfall offset continuing growth in average spend, with first quarter like-for-like sales growth softer than levels recently achieved.

DekelOil (LON:DKO) advanced nearly 4% to 1.35p after announcing plans to raise £10.8mln to acquire an extra 30.5% stake in its profitable Ayenouan palm oil project in Cote d’Ivoire.

Redx Pharma Plc (LON:REDX) was nearly 9% healthier at 36.5p as the drug discovery and development company reached pre-clinical proof of concept stage with a potential treatment for leukaemia and other blood cancers.

New Zealand and Australia-focused Mosman Oil & Gas (LON:MSMN) made a CAD$400,000 cash investment in GEM International Resource Inc. (TSX:GEM). Shares rose 11.11% to 0.75p.

Building technology group Coms (LON:COMS) retreated 4.84%  to 1.475p despite reporting full-year earnings above hopes.

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