RAMSEY CROOKALL

27th  September 2011

Morning Report

The FTSE 100 is extending gains with bullish momentum on stronger overseas markets and hopes that policy makers are finally finding solutions to the euro zone's debt crisis. In stocks, recovering commodity prices kick-up London's mining and oil equities. Both sectors are also seeing a degree of value hunting after recent losses. Xstrata is up 5.1% and Petrofac up 4.0%.

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 9:45                             Up          107     @       5197

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

Spot Gold $/Oz           $1660     Up 2.00%                    Brent Crude Oil          $105.87                 Up          1.00 % September Delivery     Exchange Rates GBP – USD           1.5545 GBP - EURO          1.1516