RAMSEY CROOKALL & CO May 31st 2012

Morning Report The FTSE 100 trades up 0.8%, pushing higher as investors take the opportunity to pick up stocks battered in the previous session. Mining stocks are among the best performers, with Vedanta Resources and Fresnillo up. Still to come, investors will look to the US for further direction. The ADP employment report, initial jobless claims are all announced later today.

Mining stocks were making gains early on, following a sell-off the day before. Vedanta was among the best performers after announcing that shareholders will get to vote on changes to the group's structure, including the merger of its two subsidiaries Sesa Goa and Sterlite, on June 15th. Sector peers Polymetal and Randgold Resources were also higher.

DIY retailer Kingfisher was in demand despite poor weather dampening sales in the 13 weeks to April 28th, the company's first quarter. Revenues fell 3.6% during period, with like-for-like sales down 4.8%.

Financial services giant Prudential rose after announcing that it is to get its hands on Reassure American Life Insurance Company (REALIC) through the acquisition of its US holding company from Swiss Re for £398m in cash.

Sweeteners firm Tate and Lyle reported full-year profit numbers in line with expectations as it saw steady top-line growth across a number of its markets. Shares edged higher early on.

Business consultancy Logica rocketed early on after news of an agreed bid from Canada's CGI Group. Information technology and business process services provider CGI is offering 105p cash per Logica share, valuing the company at around £1.7bn.

THE FTSE 100             @ 10:00       Up          47        @      5,344 THE DOW JONES            closed        Down        160       @     12419 THE NASDAQ               closed        Down        33        @      2837 Exchange Rates

GBP – USD       @      10:00            1.5512 GBP - EURO     @      10:00            1.2500

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