Investors took advantage of a drop in the share price of Gulf Keystone Petroleum today after the stock dropped 9.3 per cent to 85.1 pence per share (1420 hrs).

The company confirmed today that it would need to undertake fundraising to make payments to the Kurdistan Regional Government following a default by its joint venture partner Etamic Corporation.

Gulf Keystone is proposing that it pays $40 million to the Kurdistan Government as an infrastructure support payment that was not made by Etamic in return for it maintaining its 80 per cent interest in Sheikh Adi and 40 per cent interest in Ber Bahr.

Investors have been told that the terms of negotiation are subject to approval from the Kurdistan Government and may yet change.

British American Tobacco’s confirmation that it was to become the latest stock trading ex-dividend - meaning new investors will not be entitled to the next dividend payout – meant its share price continued to dip to 2227.5 pence, down 3.4 per cent (1430 hrs).

Investors seized the opportunity, however, giving BAT the opportunity to re-appear in the top buy list for the first time in a month.

On the whole, European markets remained largely subdued across the board, however.

Joshua Raymond, market strategist at City Index, was among those noting that Euro indices had reached a crossroads.

He explained, ‘European markets were waiting for macro economic news to help dictate their next moves. The FTSE 100, DAX and CAC are all trading around 0.2 per cent higher this morning, but in truth all major Indices have moved largely sideways for the last three trading sessions in tight trading ranges.

‘You get the feeling that the markets are on a bit of a crossroads right now. There has not been too many reasons to add to positions this week but equally investors are not yet willing to cash in their gains on mass in case the markets do push on further from here.

‘Therefore, they are largely sitting on the sidelines waiting for news to dictate their next move.’

TD WATERHOUSE
Top ten trades
Wednesday 10 March (morning session)

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Buy
1. Gulf Keystone Petroleum, 27.2 per cent
2. Barclays, 15.7 per cent
3. Royal Bank of Scotland, 10.1 per cent
4. UK Coal, 8.8 per cent
5. Tanfield Group, 8.2 per cent
6. Desire Petroleum, 6.9 per cent
7. Solo Oil, 6.7 per cent
8. Lloyds Banking Group, 6.7 per cent
9. British America Tobacco, 5.6 per cent
10. Inchcape, 4.1 per cent

Sell
1. Lloyds Banking Group, 26.4 per cent
2. Royal Bank of Scotland, 16.9 per cent
3. Xstrata, 9.8 per cent
4. Solo Oil, 8.1 per cent
5. Inchcape, 7.6 per cent
6. Tanfield Group, 7.2 per cent
7. UK Coal, 6.6 per cent
8. Gulf Keystone, 6.4 per cent
9. Barratt Developments, 6.2 per cent
10. Taylor Wimpey, 4.8 per cent