RAMSEY CROOKALL & CO LTD

22nd  June 2011

Afternoon Report

The FTSE 100 is down 0.4%, sinking back into the red after a brief rise into positive territory. The index follows European peers lower as concerns about the next step for Greece creep back to weigh on sentiment. As a result banks, which are sensitive to the sovereign debt crisis, have fallen. Meanwhile, US stock futures are negative. The focus here will be on the FOMC rate announcement and press conference later today.

The government of George Papandreou secured 155 of the votes in the 300-seat Greek parliament in a confidence motion ballot. Victory was widely expected, however, and with the future of the administration secured - at least for a while - the hard work of pushing through austerity measures now begins.

Back in London, the focus is on corporate news flow. Kesa Electricals is going well even after poor trading at its UK chain Comet held back sales in the year to 30 April and the electrical retailer said trading has been weaker than expected so far in the current financial year. The company still raised its full-year dividend though. Fellow electrical retailer Dixon’s Retail is also posting big gains.

Imagination Technologies ,the designer of graphic chips for computers and smartphones, sales were slightly short of expectations in the year to 30 April, but the company unveiled an impressive new target of annual sales of 1bn devices using its technology in five years. Revenue grew by 21% from the previous year to £98m. Analysts had been looking for a figure some £100m or so higher. Pre-tax profit rose to £16.4m from £10.2m.

Aggreko, the Scottish company that is a global player in the temporary power market, has bagged a $37m 12-month contract with the Tanzania Electric Supply Company (TANESCO).

Central London-focused property group Capital and Counties is set to submit planning applications for the Earls Court and West Kensington Opportunity Area in west London after two years of consultation.

THE FTSE 100 at 12:00                       Down          28         @     5747

THE DOW JONES closed                   Up            109         @    12190

THE NASDAQ COMP closed             Up          57          @    2687 

Exchange Rates GBP – USD           1.6125 GBP - EURO          1.1220