Back
10 Dec 2014
Drop in Energy shares weakens FTSE
FXStreet (Mumbai) - The London’s Ftse fell into the red due to the sell-off in Energy shares triggered by the Organization of Petroleum Exporting Countries’ (OPEC) bearish crude demand and supply forecasts for the current year and the next year.
The Ftse index now trades 0.05% lower at 6526.00, down from a high of 6564.30 hit earlier today. Despite the decline, the index breadth is still positive with an advance-decline ratio of 60:40. However, the gains were erased mainly due to a sharp fall in the Energy shares.
The Ftse Oil Equipment Services and Distributions index has weakened 2.89%, followed by a 1.74% decline in the Oil and Gas index. The mining index is also trading down by 0.95%. Meanwhile, software and Computer services index has added to the bearish pressures by falling 1.05%.
Among the index stocks, shares in Petrofac, Royal Dutch Shell B., and Royal Dutch Shell A., are down 3.3%, 1.93%, and 1.67% respectively. Shares in Tullow Oil retreated 0.79%. Moreover, the stock was trading in green before the OPEC announcement hit the wires.
Energy shares, which were trading sideways, saw a renewed selling pressure after the OPEC said the demand for its Crude in 2015 is likely to hit a 12-year low. Moreover, the group also revised its forecast of Non-OPEC supply higher for 2015.
Ftse Technical Levels
The index has an immediate support located at 6446, under which losses could be extended to 6400 levels. Meanwhile, resistance is seen at 6559 and 6637 levels.
The Ftse index now trades 0.05% lower at 6526.00, down from a high of 6564.30 hit earlier today. Despite the decline, the index breadth is still positive with an advance-decline ratio of 60:40. However, the gains were erased mainly due to a sharp fall in the Energy shares.
The Ftse Oil Equipment Services and Distributions index has weakened 2.89%, followed by a 1.74% decline in the Oil and Gas index. The mining index is also trading down by 0.95%. Meanwhile, software and Computer services index has added to the bearish pressures by falling 1.05%.
Among the index stocks, shares in Petrofac, Royal Dutch Shell B., and Royal Dutch Shell A., are down 3.3%, 1.93%, and 1.67% respectively. Shares in Tullow Oil retreated 0.79%. Moreover, the stock was trading in green before the OPEC announcement hit the wires.
Energy shares, which were trading sideways, saw a renewed selling pressure after the OPEC said the demand for its Crude in 2015 is likely to hit a 12-year low. Moreover, the group also revised its forecast of Non-OPEC supply higher for 2015.
Ftse Technical Levels
The index has an immediate support located at 6446, under which losses could be extended to 6400 levels. Meanwhile, resistance is seen at 6559 and 6637 levels.