RAMSEY CROOKALL
6th July 2011
Afternoon Report
The FTSE 100 closed 0.3% lower, as investors reduced risk after the strong gains
achieved last week, with a Moody's downgrade of Portugal's debt hurting sentiment.
Banks take a hit on escalating fears about exposure to sovereign debt, with Barclays
falling 3.7%. China's interest rate hike and a weaker-than-expected ISM non-
manufacturing reading from the U.S. did nothing to relieve pressure on the London
market.
Deutsche Bank has raised Associated British Foods target price to 1050p from 950p.
It has noted that favorable dynamics in European sugar are likely to keep prices high
and generate a major windfall for Associated British Foods.
Advertising conglomerate WPP was one of the heaviest fallers in the large-cap index.
It has acquired a majority stake in Indian advertising agency, Mindset Advertising.
Serco Group is expected to accelerate its organic growth to 7% in '12 and 8% in '13
as a result of increased outsourcing and less drag from government spending cuts in
the UK, Bank of America Merrill Lynch said. Serco is also expected to have strong growth
in the Asia-Pacific region. Serco at the close of trading up 3.9%.
Sportswear retailer Sports Direct’s move into the fashion world with the acquisition of
80% shareholdings in the Scottish fashion chains USC and Cruise Clothing for £7m pleased
the market.
Turning to smaller companies, shares in Coal of Africa roared higher after the miner said
it had been granted approval to build its project at Vele in South Africa. Construction
is expected to be completed in six to nine months and production is expected to reach
1m tonnes a year.
THE FTSE 100 closed Down 21 @ 6002
THE DOW JONES at 4:45 Up 40 @ 12611
NASDAQ COMP at 4:45 Down 3 @ 2822
Echange Rates
BP – USD 1.5998
GBP - EURO 1.1161
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