RAMSEY CROOKALL & CO
29th November 2012
Evening Report
The FTSE 100 ends up 1.2% at 5870.30, with investors cheered by signs of progress on US budget
talks. Better-than-expected US initial jobless claims and pending home sales also underpin the
mood.
Rio Tinto was among the best performers on Thursday after Chief Executive Tom Albanese boasted
at an investors seminar that the company was "very well positioned despite the challenging global
environment". The company said it is targeting five billion dollars of cost savings by the end of
2014 as it voiced 'major uncertainties' about the future growth of the US and Europe. However, it
the firm added it was " guardedly optimistic" on China's prospects, forecasting a light rise in
Chinese GDP growth to above eight per cent next year.
Luxury retailer Burberry got a lift after Chinese Commerce Minister Chen Deming said that the
country would definitely hit its growth target of at least 7.5% this year.
The stock has been very sensitive to news on Chinese economic activity, after the firm's products
proved such a hit amongst the country's consumers.
Utilities firm Pennon, which owns South West Water and waste business Viridor, was another riser
after delivering half-year pre-tax profits in line with expectations, up 3.4% to £111.1m.
Energy services giant Wood Group lead the fallers on reports that the Wood family trust and members
of the Wood family reduced its stake in the firm by 4.4%.
DIY group Kingfisher was lower after seeing like-for-like sales fall 2.8% in the third quarter. In
the UK, Kingfisher's biggest market, total sales declined by 0.7% to £1.05bn, and were down 3.8%
in like-for-like terms.
Pay-TV and broadband group BSkyB was lower after Jefferies downgraded its rating on the stock from
'hold' to 'underperform' and cut its target price from 700p to 650p. "We no longer believe Sky's
valuation reflects the challenges it faces as the UK's incumbent pay TV platform as the market
matures," analysts at Jeffries' said.
THE FTSE 100 Closed Up 67 @ 5870
THE DOW JONES @ 17:00 Down 4 @ 12980
THE NASDAQ @ 17:00 Up 8 @ 2999
Exchange Rates
GBP – USD @ 17:00 1.6023
GBP - EURO @ 17:00 1.2371
Gold USD/Oz $1,724
Researching your Manx family history can be a very interesting and rewarding hobby. Trace your roots in the Isle of Man with our helpful of guide.
