Petro Matad has announced that well testing at its Gazelle-1 site has exceeded expectations, with the company now fast-tracking the well for production before month-end.

At long last, some good news from Petro Matad.

The AIM-quoted Mongolian oil company revealed on Wednesday that the well flowed oil and gas to surface without artificial lift after perforating an eight-metre zone in the Tsagaantsav Formation.

Initial flow rates reached 160 barrels of oil per day on a 1/8 inch choke. This jumped to 300 bopd on a larger choke, ultimately achieving approximately 460 bopd on a 1/4 inch choke.

Crucially, no formation water appeared during testing. The oil quality measured 43° API, matching crude from the company’s Heron-1 well.

‘The performance of Gazelle-1 on test has exceeded expectations’, Petro Matad said in an RNS released on Wednesday, adding that production is targeted to begin before the end of October. Neighbouring operator PetroChina has provided equipment from its inventory to expedite completion and start-up.

Petro Matad shares were 30% higher at the time of writing.

The flow rates mean the rig will remain at Gazelle-1 rather than moving to test the Gobi Bear-1 well as planned. That operation has been postponed until April 2026. Investors shouldn’t be too upset that development at Gobi will take a while longer.

Elsewhere, Petro Matad reported progress at Heron-2, where beam pump installation began this month, and confirmed completion of Heron-1’s connection to Mongolia’s national electricity grid.

“We are delighted that the results from the Gazelle-1 well test have exceeded our expectations and we are now prioritising getting the well onstream as it shows the potential to significantly increase our daily production and revenue,” said Mike Buck, CEO of Petro Matad.

“We are also glad to see the start of an efficient down hole clean up at Heron-2 which should give us the definitive results on flowing fluid and well rate that we seek.

“We are disappointed that we will not be able to test Gobi Bear-1 during this operational season but there is minimal additional cost to remobilise for this activity in 2026 and right now, given the enthusiasm with which Gazelle-1 has tested, the production addition must be our first priority.”

Petro Matad was included in UK Investor Magazine’s ‘Top 20 Stock Picks for 2025’ and is currently one of the worst performers, losing 27% year-to-date.

Mobico Group shares jumped on Thursday after the transport group announced it had secured a major eight-year transport contract in Saudi Arabia worth €500 million.

Mobico Group’s long-suffering shareholders were due some good news and that has come in the form of a ‘major’ contract with the Kingdom.

The company’s ALSA subsidiary will operate the service through a joint venture with a local firm. It will operate 156 vehicles—126 of which are electric—serving Qiddiya, a new city being developed near Riyadh.

The agreement will help support local development plans in Qiddiya, one of Saudi Arabia’s flagship projects. Qiddiya is believed to become the country’s largest entertainment destination.

The contract covers park-and-ride facilities and shuttle services linking Riyadh with Qiddiya. It marks a significant expansion for ALSA in the kingdom, where the company has operated long-haul intercity routes in the southern region since October 2023.

Mobico described the deal as “capital-light”, suggesting limited upfront investment requirements.

One would think the deal puts Mobico in good standing for further contracts as Saudi Arabia undertakes ambitious development and infrastructure projects.

“This new contract, which meets our disciplined return hurdles, strengthens Mobico’s presence in the Middle East and showcases ALSA’s ability to win competitive contracts in large-scale overseas projects, positioning ourselves as a leading operator of innovative, sustainable transport services,” said Phil White, Executive Chair of Mobico.

The FTSE 100 powered to record highs on Wednesday, with precious metals miners and Lloyds helping the index shake off a poor session in the US overnight.

London’s leading index was trading at 9,532 at the time of writing.

“After a miserable day on Wall Street yesterday, European markets opened with a spring in their step,” said Russ Mould, investment director at AJ Bell.

“The FTSE 100 was propelled by Lloyds enjoying a relief rally amid relatively positive news on the motor finance scandal, while Endeavour Mining continued to shine off the back of gold surpassing $4,000 an ounce for the first time.

“While stock markets have generally done well this year, gold has been a superstar. Traditionally, investors would load up on the shiny stuff when markets look gloomy, not when they’re motoring ahead. It shows that investors are hedging their bets, particularly as there are growing concerns that euphoria around AI has gone too far and the bubble could burst at some point.”

Precious metals miners have been a core driving force in the FTSE 100’s gains so far this year, and Endeavour Mining and Fresnillo were again among the top risers as gold took out yet another key level on Wednesday

And the rally could be set to continue. The latest gains in gold are being attributed to the US government shutdown, which shows little sign of being resolved in the short term.

“This latest high marks the latest stage in what has been a meteoric rise in the gold price, which has now doubled in the last two years,” said Steve Clayton, head of equity funds, Hargreaves Lansdown.

“Some are pointing to the ongoing US government shutdown, where Federal workers have been sent home, possibly with no pay, if overnight reports of President Trump’s intentions prove accurate.”

Endeavour Mining was the top FTSE 100 riser with gains of 2.7%.

Lloyds was also among the top risers as investors cheered an FCA proposal that could mean the financial impact of the motor finance scandal for Lloyds is less than previously feared.

“The motor finance scandal is proving to be less dramatic than thought. Lloyds’ shares jumped after the regulator proposed that motorists would get £700 on average in compensation, lower than the previous indicated amount of £950,” Russ Mould said.

“Lloyds has already taken a £1.2 billion provision to cover the cost, which now looks like a reasonable assumption. The fact its share price jumped means the market is comfortable with the outcome and that a big uncertainty factor will soon be removed.

“Lloyds’ management will be keen to shift the market’s focus to the bank’s growth opportunities in the future, not what it has done in the past.”

Lloyds shares were 2% higher at the time of writing.

Tesla investors were not impressed with the launch of the latest models of Tesla EVs and shares fell in an immediate reaction to the release of the low-cost Model Y and Model 3.

Elon Musk’s Tesla is facing growing competition from Chinese players, such as BYD, which has overtaken Tesla in terms of sales in many geographies. There were hopes that new models could improve their position.

However, the launches did nothing to address concerns that Tesla was at risk of becoming just another EV maker amid the growth of specialist EV manufacturers and the increasing range of EVs produced by traditional automakers.

“After days of cryptic X posts, Tesla’s announcement landed with a dull thud for those dreaming of a game-changing new model. Instead, it debuted cheaper ‘standard’ trims of the Model 3 and Model Y, achieved by stripping out premium features like glass roofs, rear screens, and some creature comforts – but this is cost-cutting, not reinvention,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

“For realistic investors, this was as expected, and still an important step to help bridge the affordability gap in the US, with the tax credit no longer on the table. The near-term focus is on squeezing costs from existing platforms, not launching a $25k car. That rumoured ‘Model Q’ or sub-$30k Tesla is still just chatter, with the Cybercab project likely occupying that slot in Tesla’s roadmap.”

Tesla shares fell 4% in US trade overnight but were slightly higher in the premarket on Wednesday.

Although investors will be disappointed about the lack of innovation in the new launches, many will have their eyes on a different prize. And that’s the future of autonomous vehicles.

Musk has been vocal about his intentions to become a leader in AVs and set out his stall with Robotaxis and limited launches of the driverless taxis in the US. There were early issues such as cars driving on the wrong side of the road. However, we are in the early stages of AV adoption, and Tesla shared interesting software developments that will lay the foundations for future growth in the area.

“Perhaps the more important headline, and one that went under the radar, wasn’t the cars at all – it was about software,” Britzman said.

“Tesla rolled out FSD v14, its biggest self-driving update in a year. The marriage of hardware and software is what really sets Tesla apart from most of its competition and is as important, if not more, than driving down the headline vehicle price.

“For investors looking for fireworks, this wasn’t it. But for those watching the autonomy story, yesterday was another important step toward the future Tesla is betting on.”

by Russell Shor

How to trade the FTSE 100 

The FTSE 100 has had a strong 2025 so far, gaining 16% year to date. The index trades at around 18 times earnings and offers a dividend yield slightly above 3%, supported by forecasts of £80 billion in dividends and more than £39 billion in buybacks. Its heavy weighting in banks, energy companies, miners, and consumer giants means profits remain closely tied to global growth and commodity prices. With interest rates at 4%, inflation at 3.8%, and gilt yields near 4.7%, dividends and buybacks continue to underpin valuations even as they appear stretched. From here, we examine three hypothetical technical scenarios for how the market may develop. 

FTSE100 Technical Analysis:  

Peak and Troughs 

Tradu’s FTSE 100 CFD, UK100, has broadly maintained a pattern of higher troughs followed by higher peaks since its reference trough in October 2022 and its reference peak in February 2023. There were periods where labelling was more complex, yet the overall trend has been clear. 

April was an exception. When President Trump announced reciprocal tariffs on “Liberation Day” (2 April), the index sold off sharply. A week later, however, a 90-day pause was announced, and the market staged a recovery. By the end of the month, the index had pared most of its losses and was down only about 1% for April. The bears had been forced out, and the bulls lifted prices well above the early April lows. 

A Continuation of the Trend Scenario 

If weakness sets in and a pullback develops, the key question is whether another higher trough can be established. Should that occur, the uptrend remains intact and would likely pave the way for a new higher peak. In this scenario, the series of higher troughs followed by higher peaks continues, reinforcing the existing bullish structure.

A Reversal of the Trend Scenario 

A second possibility is that the market is close to a peak and that a reversal is looming. In this case, a higher trough could still form initially, but the bulls may lack the strength to push through the previous peak. Instead, a lower peak would emerge, signalling potential fatigue. 

The real risk comes if bears then drive the next leg below the prior trough, creating a lower trough. This outcome would effectively resemble a head-and-shoulders formation, a classic sign of a trend reversal. 

The Trend Consolidates Scenario 

 A third option is that neither side gains the upper hand. If demand and supply balance, price action could settle into a sideways consolidation. This may take different forms, with a rectangular trading range being one likely outcome. A decisive breakout or breakdown from this range would then provide the signal for the next directional move. 

Conclusion 

The FTSE 100 has delivered solid gains this year, but the next stage will depend on how price action develops against a challenging backdrop of tight valuations, elevated rates, and shifting fundamentals. Whether the index extends its series of higher highs, signals a reversal through lower peaks and troughs, or pauses into a consolidation phase, each scenario carries distinct implications for investors and traders alike. Careful monitoring of peak and trough behaviour will be key, as the eventual breakout or breakdown will set the tone for the market’s next decisive move.

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