UK shares surge higher in early trade ion Tuesday with investors chasing to catch-up after the four-day weekend. In earky deals the benchmark FTSE 1900 index is around 80 points, or 1.1%, at 6,912, while midcaps put in an almost equally strong showing, the FTSE 250 rallying 166 points to 17,434.
Resources stock lead the way. Mining giant Rio Tinto (RIO) rises 1.7% to £27.98 after completing a bigger-than-expected off-market share buyback due to strong demand. The company, as part off its planned US$2 billion capital return announced in February, repurchased 11.6 million shares at a price of A$560 million, more than the A$500 million initially indicated.
Elsewhere, the expected delay to a hike in US interest rates and a rise in oil prices through the Easter holiday is being taken positively by the oil and gas sector. BG (BG.) is up 3.2% to 880p, Royal Dutch Shell (RDSB) is up 2.22% to £20.70 while on the oil services side Hunting (HTG) gains 5.4% to 522.5p.
Pub group Enterprise Inns (ETI) is up 2.2% to 102.5p after saying it will update the market on its 'strategy for maximising long term value from its estate' when it reports interim results on 12 May. This includes building managed and commercial property estates alongside its tenanted pub model as a result of the anticipated introduction of a Market Rent Only option.
Among bigger movers, Premier African Minerals (PREM:AIM) shoots nearly 19% up to 1.63p as it confirms its Environmental Impact Assessment has been approved by the Environmental Management Agency of Zimbabwe, thus granting permission to operate its flagship RHA Tungsten Project in the country.
Also jumping is oil minnow Wildhorse Energy (WHE:AIM), up 30% to 4.38p, with talks mooted over a potential acquisition of a resource project.
Meantime, Atlantic Coal (ATC:AIM) announces positive production and sales update for the quarter to March 31, driving a 18.5% rally to 0.16p.
Going the other way is Frontera Resources (FRR:AIM), down 23% to 0.84p, after repaying $1.3 million in accordance with its previously announced SEDA-backed loan agreement entered into with YA Global Master.
Airline Flybe (FLYB) nudges 3% higher to 59.25p after seeing a return to growth in both seat capacity and revenue in its final quarter. The company delivered 15% additional capacity in Q4 2014/15, but held its load factors constant and delivered 15% passenger growth.
DekelOil (DKL:AIM), the operator and 51%-owner of a palm oil project in Ivory Coast, cultivates a 6.3% gain to 0.93p on a strong first quarter update. The microcap flags a significant ramp-up in Crude Palm Oil (CPO) production in Q1 and a positive outlook for 2015. Shares outlined the investment case in our Small Caps section back in August.
Chinese lottery group DJI (DJI:AIM) gains 2.5% to 61p on news eight government authorities in China have outlined their commitment to promoting legal and licensed participants in the lottery industry. This follows a temporary suspension of online lottery sales on 10 March which has yet to be lifted. DJI says its 2015 results will not be impacted by the suspension and that regulation will be positive in the long term.
Investors welcome LXB Retail Properties (LXB) agreeing to sell its Biggleswade retail park development for an initial £58.5 million. Shares gained 2.9% to 139.2p on news that the proceeds are set to be returned to shareholders. The company is also discussing the sale of assets in Rushden.
Regenerative medicine specialist Tissue Regenix (TRX:AIM) dives 8.9% to 15.2p as investors dump the stock ahead of its full-year results on May 11. Pre-tax losses are expected to widen 26.7% to £7.1 million in the year to February, according to Jefferies’ forecasts.