By Houston Business Journal

BP Plc shares jumped sharply in the final hour of trading Thursday on news that the flow of oil had stopped into the Gulf, and were making further gains in after-hours trading.

Shares of BP (NYSE: BP) jumped $2.74, or 7.6 percent, to close at $38.92. The stock has now gained nearly half of the value that had been lost since the shares plummeted to a low of $26.75 on June 28. The shares were priced above $60 on April 20, the day of the Deepwater Horizon explosion and fire.

Shares of other companies linked to the spill jumped as well. Transocean Ltd. (NSYE: RIG), which leased the rig to BP, rose $2.34, or 4.5 percent, to $54.70.

Shares of The Woodlands-based Anadarko Petroleum Corp. (NYSE: APC), BPâ¿¿s partner in the blown-out well, gained $1.50, or 3.2 percent, to finish the session at $49.08.

Dan Pickering, co-president of Tudor, Pickering, Holt & Co., said Wall Street is paying close attention and is "hyper-focused" on the process of getting the blowout under control.

"Getting the well controlled and killed keeps the potential liability for BP (and others) from growing further, so any nuance about the process is now being examined under the microscope," said Pickering. "There is a lot of short-covering going on in BP as well. As folks are closing out negative bets given the progress that is being made."

The Houston Business Journal is providing continuous coverage of the Gulf oil spill.

Copyright 2010 American City Business Journals
Copyright 2010