RAMSEY CROOKALL & CO 23rd  June 2011

Morning Report

The FTSE 100 is down 0.50% as investors digest comments about a weaker outlook for the US from Fed Chairman Ben Bernanke overnight Wednesday and as they await euro-zone PMI data. Bernanke's comments followed the Fed's decision to keep rates unchanged. Meanwhile, mining stocks are on the decline as China tightens monetary policy.

Recycled packaging firm DS Smith is in demand after it overcame a sharp rise in input costs to grow pre-tax profits by 86% last year. Profit before tax in the year to 30 April rose to £102.2m from £55.0m the year before, on sales that rose 19.5% to £2,474.5m from £2,070.6m. With the effects of the recent acquisition of Otor stripped out, sales rose 10.0% year-on-year.

Train and bus operator Go-Ahead is up after saying it expects to post a full-year profit ahead of expectations as high petrol prices and tough economic conditions prompt drivers to abandon their cars in favour of public transport.

Currys and PC World owner Dixons is down after it saw underlying profit before tax dip to £85.3m in the year to end-April from £90.0m the year before. The group said it is increasing market share across most of its markets and sectors, especially in the UK and the Nordic countries.

Military decoy flare and mine detection firm Chemring is under heavy attack even after it managed to post a sharp rise in sales and profits in the half-year to 30 April despite constraints on military spending in Britain and the US. Revenues climbed by 29% from the previous year to £329.8m, while underlying pre-tax profits were up by 17% at £49.6m.

THE FTSE 100 at 9:45                          Down            29     @     5743

THE DOW JONES closed                       Down            80     @    12190

THE NASDAQ COMP closed                Down            18     @    2669 

Exchange Rates GBP – USD           1.6018 GBP - EURO          1.1217