RAMSEY CROOKALL & CO
28th November 2012
Morning Report
The FTSE 100 is down 0.3%, maintaining early losses. Marks & Spencer rises to the top of
the FTSE 100 leader board after reaching an agreement with its Pension Scheme Trustees on
a 10-year funding plan. United Utilities is still performing well after its 1H numbers.
Burberry also fares well, rising after Nomura raises its stance on industry peer LVMH.
The economic calendar is light, with only US new home sales data of any note.
Water and sewage services group United Utilities gained after reporting that revenue in the
first half rose from £793m to £823m as regulated prices increases offset reduced commercial
volumes and lower property sales associated with the water business.
Chip designer ARM Holdings moved higher after the Daily Mail reported about a possible 1,200p
bid from US tech giant Intel.
Medical technology group Smith & Nephew fell early on after announcing that it is to buy the
assets of US-based Healthpoint Biotherapeutics for $782m in an attempt to bolster its position
in advanced wound care.
Security firm G4S was in demand after Jefferies upgraded its rating on the shares from 'hold' to
'buy', saying that the stock's valuation is now sitting close to the bottom of its 10-year average.
Contract caterer Compass was also given a lift by Jefferies, which raised its recommendation from
'underperform' to 'hold', saying that the company's announced buy-back, dividend increase and
reiterated guidance "exudes confidence".
In contrast, insurance firm Resolution fell after UBS cut its rating from 'buy' to 'neutral',
citing disappointing nine-month trading, EV write-downs, UK restricting charges and the recent
share price performance. Telecoms group Vodafone was suffering from a downgrade by Berenberg to
'hold'.
AMEC, Johnson Matthey, National Grid and Tate & Lyle were also registering losses this morning
after going ex-dividend.
THE FTSE 100 @ 10:00 Down 18 @ 5781
THE DOW JONES closed Down 89 @ 12878
THE NASDAQ closed Down 8 @ 2967
Exchange Rates
GBP – USD @ 10:00 1.6006
GBP - EURO @ 10:00 1.2381
Gold $/ OZ $1740
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