More business news in brief.
TVC loses 15% of value after broker's error
Shares in TVC Holdings, the private equity firm, temporarily fell by almost 15 per cent in Dublin yesterday, as a broker's error wiped €12.6 million off the value of the company.
It is understood a Dublin broker placed a sell order in pence, instead of cents, thereby increasing the value of shares sold and causing the share price to fall.
The stock, which trades on the IEX market in Dublin and the AIM market in London, closed at €0.870 on August 26th, but the incorrect after-hours trade saw the stock open down 14.4 per cent yesterday morning at €0.745.
The mistake was then picked up by the Irish Stock Exchange (ISE), and following discussions between the ISE and the broker, the error was rectified, with the stock closing back up at €0.870 yesterday in Dublin.
Oil prices up on Storm Gustav fears
Oil prices rose yesterday on forecasts that Tropical Storm Gustav will intensify into a hurricane as it ploughs toward the US oil and natural gas platforms in the Gulf of Mexico.
Further support came from weekly US government inventory data that showed an unexpected drop in crude oil stockpiles.
US crude traded up $1.78 to $118.05 a barrel in afternoon trading in New York, adding to two days of gains. London Brent crude traded up $1.44 to $116.07 a barrel. - (Reuters)
Circle's Morocco well ready to go
Exploration firm Circle Oil will commence gas production from a well in Morocco on September 15th, producing the company's first commercial revenues.
The development follows completion of its acquisition of a 60 per cent interest in a permit in the Rharb Basin. The state of Morocco holds 40 per cent of the permit.
"This is a significant event for the company and I believe a foretaste of the future as Circle expands its production in Morocco and other areas," said Circle chief David Hough.
Dunnes plans 10% weekend price cut
Dunnes Stores is planning to cut its prices by 10 per cent this weekend on all grocery items except alcohol and cigarettes.
The move will turn the heat up on rivals Tesco, Super Valu, Lidl and Aldi in what is already a cut-throat environment as consumers have moderated spending.
Superquinn will today begin offering a range of basic goods at 1970s prices in a bid to boost its trade.
Industry sources said Dunnes planned to take the hit on its margin and had not asked suppliers to share the financial pain of the price cuts.
It is understood that the company, which is headed by Margaret Heffernan and her brother Frank Dunne, is hoping to boost significantly its 24 per cent market share through the move.
ECB indicates rate cuts not on agenda
European Central Bank policy-makers signalled fresh alarm over the outlook for euro zone inflation yesterday even as German data indicated that headline inflation rates had fallen from record highs.
Comments by ECB governing council members suggested cuts in interest rates were far from being considered, despite the abrupt slowdown in euro zone growth. Bundesbank president Axel Weber warned that another increase in borrowing costs might be necessary when growth recovered.
Reflecting lower energy costs, Germany's annual inflation rate dropped from 3.5 per cent in July to 3.3 per cent in August. - (Financial Times service)
