Bond market trading set the tone for the London session. Hours before equity dealers in the Square Mile had the opportunity to execute their first Vedanta trade, the company’s 2019 bonds had tumbled to a fresh record low during Asian trading amid growing speculation the recent crash in commodity prices would push the India-focused oil producer and metals miner into a covenant breach. The respite proved short-lived, however, and Vedanta shares closed down 8.4p at 397p, a 2.1pc decline. A cautious assessment of the company’s prospects by HSBC analysts was one factor that dragged the stock lower once again. Despite upgrading their recommendation to “neutral” from “underweight” - to reflect Vedanta’s share price plunge since November - the analysts warned that the group’s “financing commitments remain challenging” and slashed their price target to 390p from 760p.They said: “Oil has been the largest contributor to Vedanta’s EBITDA and free cash flow. telegraph.co.uk/finance/markets/marketreport/11356123/Vedanta-slides-amid-oil-worries.html
Posted on: Mon, 19 Jan 2015 21:29:51 +0000
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