RAMSEY CROOKALL

27th  September 2011

Afternoon Report

The FTSE 100 trades up 2.5%, staying up despite CBI data showing UK retail sales were lower year-on-year in September and retailers expect them to weaken further in October. Mining issues provide most of the support as metals prices advance, with Vedanta Resources up 10% and Kazakhmys up 9.3%. Meanwhile, investors continue to digest headlines about the possible extension of the EFSF.

Pubs group Mitchells & Butlers saw a 2.7% year-on-year increase in like-for-like sales (LFL) in the first 51 weeks of its financial year, though LFL growth has slowed to 0.5% in the 9 weeks to 17 September. Food sales at the bid target in the 9 week period were up 1.1% on a LFL basis, while drink sales edged up 0.2%. The group said the UK consumer environment remains challenging, while cost pressures are likely to endure into next year.

Daily Mail publisher DMGT is participating in the market advance. The group has warned that full year operating profit will be down from the previous year, while earnings per share will be at the lower end of market expectations due to the weak consumer advertising environment.

AIM-listed Europe Oil and Gas has fallen after being hit by a tax bill of €730,000 by the Romanian authorities following its sale of the Bilca gas field in 2007. The Romanian government says value added tax should have been paid on the transaction.

THE FTSE 100 at 12:00                      Up           132     @         5221

THE DOW JONES closed                       Up           272     @         11043                    NASDAQ COMP closed                         Up           33      @         2516 

Commodities Spot Gold $/Oz           $1669                          Up              2.60% Brent Crude Oil          $105.20                       Up               0.40 % September Delivery  

Exchange Rates GBP – USD           1.5566 GBP - EURO         1.1507