RAMSEY CROOKALL & CO April 24th 2012

Morning Report

The FTSE 100 is up 0.4%, maintaining gains. The index is staging a recovery following the sharp declines yesterday. Stocks that sold off heavily on Monday are now higher Tuesday.

Hedge fund manager Man Group, insurance group Prudential and banking peers Barclays and Lloyds were among the best performers in the opening hour. Rumours surfaced yesterday that Prudential is eyeing the insurance business of Thailand's Thanachart Bank, valued at about £310m. Meanwhile, Barclays was being helped by positive commentary from Investec this morning which reiterated its buy recommendation on the stock ahead of its first-quarter results on Thursday.

Oil giant Royal Dutch Shell was making gains after making a 220p-a-share recommended cash offer for Cove Energy, up from the proposed offer of 195p per share back in February.

Smartphone chip designer ARM Holdings fell despite seeing profits jump again in the first quarter as digital technology continues to spread. The firm reported adjusted pre-tax profits of £61.9m in the first three months of 2012, up 22% on the year before.

Interim profits from Primark owner and foods group Associated British Foods came in bang in line with market expectations, helping shares a little higher this morning. Adjusted operating profit of £412m in the 24 weeks ended March 3rd was up 6% on the corresponding period a year earlier.

Mining giant Anglo American was wanted following the completion of the final stage of the $1.4bn Scaw Metals Group divestment.

Sector peers British American Tobacco and Imperial Tobacco were heavy fallers ahead of their first-quarter and first-half results due in the coming week, respectively. Jefferies maintained its hold ratings on both stocks this morning.

Support services firm Carillion was in demand after it secured a massive contract with Oxfordshire County Council, designed to save the local authority over half a million pounds a year.

THE FTSE 100             @ 10:00           Up       23       @      5,688 THE DOW JONES            closed            Down     102      @     12927 THE NASDAQ               closed            Down     30       @      2970

Exchange Rates

GBP – USD       @      10:00             1.6139 GBP - EURO     @      10:00             1.2257



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