BP shares on five-day rally

The Associated Press ~ staff The News
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Company nears completion of containment plans in Gulf oil spill

BP shares continued a five-day rally Monday as the company gets closer to containing the Gulf oil spill. The British oil giant also said it is in talks on the sale of company assets.

BP shares added $2.71, about 7.96 per cent, to close at US$36.76 in massive trading of 71.5 million shares on the New York Stock Exchange. The stock has jumped 35 per cent since bottoming out on June 25.

Vessels assisting in the capping of the Deepwater Horizon oil well are seen from the Pacific Responder oil skimming vessel in the Gulf of Mexico near the coast of Louisiana Monday. Photo by The Associated Press

NEW YORK -

BP shares continued a five-day rally Monday as the company gets closer to containing the Gulf oil spill. The British oil giant also said it is in talks on the sale of company assets.

BP shares added $2.71, about 7.96 per cent, to close at US$36.76 in massive trading of 71.5 million shares on the New York Stock Exchange. The stock has jumped 35 per cent since bottoming out on June 25.

Investors are returning to BP as the company plans to fasten a new cap that could contain the oil leaking into the sea.

Analysts also said investors are heartened by reports that BP is in talks to raise money by selling some of its assets.

BP spokesman Andrew Gowers told The Associated Press the company is talking to potential buyers regarding company assets.

He said there were no offers to buy all of BP.

"The company is not for sale," Gowers added.

BP previously announced that it planned to sell assets worth $10 billion over the next 12 months.

Investors stayed away from BP for several weeks even though analysts said the stock had been punished more than necessary.

Many are coming back now that BP is close to containing the oil. A relief well that could plug the spill for good also seems near completion.

"Maybe we're seeing the light at the end of the tunnel," said Blake Fernandez, an analyst with Howard Weil, Inc.

Despite the rise, Wall Street continues to value BP much less than before the spill. BP's shares have given up about $75 billion in value since the April 20 explosion.

Organizations: BP, New York Stock Exchange, The Associated Press Howard Weil

Geographic location: NEW YORK

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  • Chris
    July 20, 2010 - 13:03

    My question is why did it take so long for them to design this cap?