RAMSEY CROOKALL & CO 30th August 2012       

Morning Report

The FTSE 100 is down 0.17%, starting with small losses Thursday. WPP is the biggest faller, down 2.8% following a poor response to its 1H results. Amongst small cap stocks, JJB Sports slumps 59% as it formally commences the sales process of the business. Meanwhile cyclical stocks slide as investors become hesitant ahead of the Fed chief's Jackson Hole speech, Friday.

Resources stocks such as Rio Tinto, Kazakhmys, BHP Billiton, Eurasian Natural Resources Corp and Vedanta Resources were registering losses this morning tracking metals prices lower. Gold, silver and platinum platinum all fell early on.

However, precious metals group Polymetal bucked the trend after reporting a 41% increase in first-half revenue as gold sales volumes and prices rose. Steel group Evraz also gained after ramping up its interim dividend by 64% in spite of falling revenues and profits.

Global advertising conglomerate WPP dropped after saying that it is set to achieve a full-year like-for-like (LFL) revenue increase some way short of previous expectations. The group is forecasting LFL revenue growth for 2012 of 3.5%, versus a budgeted improvement of 4.0%.

Barclays was under the weather after promoting from within to fill its vacant CEO position, moving up Antony Jenkins, currently head of Barclays Retail and Banking. Barclays is under pressure after the Serious Fraud Office said it is investigating the lender in relation to payments made in the Middle East.

Car insurance group Admiral was also in the red despite reporting a record half-year profit and record interim dividend payment. The company noted a "marked change" in the core UK car insurance market in 2012 "premium rates falling and competitors seeking to add market share".

Shares in Cape, the provider of non-mechanical support services, rose strongly despite the group reporting a 65% drop in adjusted pre-tax profits in the first half. Nevertheless, revenues improved by 11% and the forward order book increased by £90m.

Heading the other way was recruitment group Hays after saying that it expects the overall economic backdrop to remains "difficult" in 2013. The firm cuts its full-year dividend by more than a half due to the increasing global economic uncertainty, which slowed the pace of the profit growth.

THE FTSE 100             @ 10:00          Down      9          @      5,733 THE DOW JONES            closed           Down      115        @     13057 THE NASDAQ               closed           Down      20         @      3053 Exchange Rates GBP – USD        @      10:00                   1.5820 GBP - EURO      @      10:00                 1.2606