Helium One Global shares surged on Monday after announcing encouraging results from its Itumbula West-1 well in Tanzania, with high concentrations of helium and hydrogen gas detected during drilling.

Helium One shares were trading 92% higher at 2.65p at the time of writing.

The company reported helium levels of up to 4.7% during drill stem tests in the well’s basement rock. This concentration is nearly 9,000 times above normal background levels.

Hydrogen was also found at 2.2% concentration in the basement – over 37,000 times higher than usual.

Analysis of downhole fluid samples from three well test intervals confirmed the presence of elevated helium. Duplicate samples will be sent to a second lab for further analysis.

Temperatures exceeding 80°C were recorded in the basement and across fault zones, indicating potential for helium and hydrogen generation. The company said these hot basement fluids are consistent with a low enthalpy geothermal system.

The company also highlighted improvements in drilling performance, with non-productive rig time reduced by over 350% compared to its previous well.

“We are delighted with the findings from Itumbula West-1 and the results from the down hole well testing have clearly confirmed the presence of a producing helium province in the Rukwa Rift Basin. The learnings from the Tai-3 well provided invaluable additional subsurface information and how the helium system works. By applying these findings, we adjusted our well location at Itumbula, and this has certainly yielded the results we were hoping for and justified that decision,” said Lorna Blaisse, Chief Executive Officer at Helium One.

“Flowing helium to surface in such high concentrations is a huge milestone for the Company and we will now fully evaluate these results and focus on advancing this project in the most effective way possible; one that will aim to achieve commerciality at the earliest opportunity.

“This drilling campaign has been a huge success for both the Company and for Tanzania. I would like to thank all of those involved in bringing the project to this point of success – especially to our in-country teams and for the continued support from the Ministry of Minerals and the Mining Commission of Tanzania, as well as the local communities where we operate.

“We look forward to providing further updates as we fully evaluate the results and outline how we are planning the next steps to advance the project.”

Tekcapital shares rose on Monday after the technology investment company received a reiterated ‘buy’ rating and revised share price target. 

Equity analysts at SP Angel have given Tekcapital a 20.7p price target, suggesting 100% upside from the share price at the time the note was published.

Tekcapital shares rose shortly after the note was released to trade at 11.4p.

SP Angel’s note was issued after portfolio company MicroSalt listed on London’s AIM last week, cementing the value in Tekcapital’s holding. 

After a rapturous debut, the MicroSalt share price has continued to appreciate inferring deep value in Tekcapital’s current share price.

At the time of writing, MicroSalt’s market cap stood at £23.7m valuing Tekcapital’s 77% stake at £18.2m. Tekcapital’s entire market cap was £19m on Monday morning, completely discounting the value in the firm’s other three portfolio companies.

Further supporting Tekcapital’s investment case, analysts at SP Angel said that while the current portfolio company valuations support upside in the share price, they felt market valuations are somewhat depressed, suggesting a higher indicative price target, should the portfolio companies rerate.

“In our view, the stock trades at a double discount to its long-term potential because the underlying prices that constitute the majority of our fair value target are themselves depressed,” SP Angel wrote in the note released on Monday.

Tekcapital shares were 14% higher at the time of writing.

Meta shares were soaring in the US premarket on Friday as the technology group announced earnings growth that beat expectations and please investors with news of its first quarterly dividend.

Meta has been the standout of the mega tech earnings season so far. Not because of underlying earnings – although they were good – but because Facebook-owner Meta announced its first quarterly dividend.

For many, it will mark the transition from a growth company to a portfolio pillar providing regular income.

As with all ‘Magnificent 7’ technology stocks, the company was all to pleased to reveal progress in the roll out of AI across the burins and now sees it as a core growth opportunity alongside the questionable Metaverse.

“We had a good quarter as our community and business continue to grow,” said Mark Zuckerberg, Meta founder and CEO. “We’ve made a lot of progress on our vision for advancing AI and the metaverse.” 

Meta’s shares have been on an astronomical run since lows around $90 in November 2022. Last night’s announcement has sent the stock another 21% higher to $479.

“Meta has seen a remarkable share price jump, as it announced its first ever quarterly dividend and a hefty share buyback. The topping of estimates also came as a very welcome surprise – the advertising revenue landscape remains very lumpy and Meta’s navigating this well,” said Sophie Lund-Yates, lead equity analyst, Hargreaves Lansdown.

“The potency of its offering is clear to see, with advertising impressions rising by a fifth, and price increases are tapering to more customer-friendly levels. The returning of cash to shareholders is a bold and well-regarded move. The amount of free cash pumping through the business means it’s more than able to afford it, and it helps pay investors for their patience as Meta works out the next generation of growth and all the Metaverse entails.”

Superdry shares surged higher on Friday amid takeover speculation after an investment fund took a 5% stake in the company.

Superdry shares were over 80% higher at the time of writing on Friday.

Norwegian investment fund First Seagull has taken a 5.3% stake in the beleaguered fashion brand.

For a new investor to buy into the company after a string of poor results suggests their intentions are to reshape the business rather than support existing management and operations.

Superdry has been dogged by falling sales as its brand loses appeal among consumers.

Revenue was down more than 23% in the most recent half-year period and alluded to financial challenges that could lead to the sale of more intellectual property.

UK banks were one of the winners from the Bank of England’s suggestion that interest rates would not be cut in the short term and would remain elevated even when reduced.

Although the BoE opened the door to rate cuts, it said it would driven by inflation and not cut rates until inflation was at acceptable levels.

Lloyds, Barclays and Natwest shares were up between 1.2% and 2.9% on Friday as investors assessed the implications of elevated interest rates on banking earnings.

In the last round of UK bank trading updates, the focus was on the outlook and forecasts of Net Interest Margins in the coming period. Net Interest Margins are a key profitability metric dictated by the Bank of England’s base rate.

When the banks released their Q3 trading updates last year, a consensus was building that major central banks would cut interest rates in early 2024. If they were to do so, it would weigh on Net Interest Margins and profitability, and this was factored into the sector’s outlook.

However, after the Federal Reserve and Bank of England kept rates on hold this week and signalled they would be cautious about lower borrowing costs, UK banks will clearly enjoy higher interest rates for longer than previously anticipated.

When banks report later this month, investors will be looking forward to slightly more upbeat Net Interest Margin outlooks than at the end of last year.

Couple this with resilience in the UK economy; the environment for UK banks is becoming more favourable than the gloomy scenarios forecast in 2023.