RAMSEY CROOKALL & CO April 19th 2012

Morning  Report

The FTSE 100 up 0.37%, steady in the black as investors adopt a rather more favorable view of the upcoming auction of Spanish bonds. Banking and financials have perked up as a result. In terms of data, attention will be on US weekly jobless claims announced before the US open.

Hargreaves Lansdown, the financial services provider and asset management group, rose strongly after seeing a record level of Assets under Administration (AuA) in the three months to March 31st despite the tough macro-economic conditions.

Engineer IMI was a high riser after Jefferies upgraded its rating on the stock from hold to buy and hiked its target price from 840p to 1,150p. "Whilst the valuation appeals, so does the scope for acquisitions on the back of a strong balance sheet and healthy pipeline," the broker said.

International Power (IPR), the FTSE 100 energy firm which has recently received a takeover offer from major shareholder GDF SUEZ, was flat despite seeing first-quarter revenue rise 5% on the back of strong growth in the emerging markets.

Meanwhile, drinks group SABMiller rose after group revenue grew by one tenth in its final quarter, while Anglo American was in demand after seeing production in most of its major resource groups increase strongly in the first quarter.

Telecoms group Cable & Wireless Worldwide, which has been rising strongly over the last few months, lost nearly a quarter of its value early on after the bid deadline for prospective bidders Tata Comms and Vodafone to make an offer passed. According to reports, Tata has said that it does not intend to make an offer.

Also suffering a sell-off was mining group Talvivaara after reiterating that full-year nickel production will be at the lower end of its guidance and saying that it has made an operating loss for the first quarter.

THE FTSE 100             @ 10:00                Up         21     @      5,766 THE DOW JONES            closed                 Down       82     @     13032 THE NASDAQ               closed                 Down       11     @      3031

Exchange Rates

GBP – USD       @      10:00            1.6053 GBP - EURO     @      10:00            1.2223



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