Share Dealing News BP Shares Plummet As Investors Panic Over Ongoing Crisis
10 June 2010 / by Lois Avery
BP shares have plunged as fears grow among shareholders about the possible suspension of dividend payments.
US politicians have slammed the oil giant for its handling of the crisis following a leak in the Gulf of Mexico.
And now investors have begun to panic about dividend payments not being made, causing BP’s share price to fall 4.2 per cent in the UK and it’s halved in value in the US since the oil began spilling out seven weeks ago.
Fears have been mounting among shareholders after analysts predicted that BP would suspend dividend payments to plug the flow of criticism coming from US politicians. The cleanup has already cost BP £870 million and US President Barak Obama has even suggested that BP chiefs should be fired for their handling of the disaster.
He has also suggested that BP pay thousands of workers unemployment benefit after they were laid off when the pipe exploded.
The problems in the Gulf of Mexico have also caused the FTSE 100 to fall and there are now fears that it couple affect pension funds in the UK
Speaking to Radio 4 London Mayor Boris Johnson said BP’s share price was bad news for UK pensioners.
“I would like to see a bit of cool heads rather than endlessly buck-passing and name-calling.
“When you consider the huge exposure of British pension funds to BP it starts to become a matter of national concern if a great British company is being continually beaten up on the airwaves. It was an accident that took place and BP is paying a very, very heavy price indeed.”
BP has topped the most popular buys list for the past 7 business days and so far this week has accounted for 14 per cent of total stock purchases.
© Fair Investment Company Ltd