RAMSEY CROOKALL & CO

14th June 2011

Evening Report

The FTSE 100 closed 0.51% higher, with sentiment underpinned by better-than-expected Chinese industrial production and U.S. retail sales data. Miners gained on signs that China's economy is not slowing as quickly as feared. Earlier today, the Office for National Statistics said U.K. inflation, as measured by the consumer prices index, stayed stable at 4.5% for the 12 months to May, and increased 0.2% on the previous month, in line with forecasts.

Today a Manx company ,3legs resources, was admitted to trading on the Alternative Investment Market after a successful IPO. The company specialises in the exploration and development of unconventional oil and gas resources with a particular focus on shale gas in Europe.

Supermarket giant Tesco was weaker after failing to return to sales growth in the UK. In the 13 weeks to 28 May, Tesco’s UK like-for-like sales excluding petrol and the impact of VAT were down by 0.1% from the same period the previous year, in line with analysts’ predictions, having contracted over the previous quarter. Total sales grew by 7% including petrol and VAT.

Royal Bank of Scotland was among the best performers after reports suggest that it is in talks to sell its vehicle-leasing business to General Electric, the American super-conglomerate.

Heading the other way was commodity trading house Glencore after the group reported its first quarter results this morning. The group’s earnings were 6% lower than Nomura’s estimates, primarily due to lower-than-expected marketing results. Meanwhile, Glencore’s chief executive dismissed speculation that the firm is working on a bid for Kazakhstan-focused miner ENRC.

Oilfield services firm Wood Group extended its contract with TAQA Bratani Limited, the energy company that is 51% owned by Abu Dhabi Water and Electricity Authority, for a further five years, helping shares higher.

Drug giant GlaxoSmithKline closed firmer after taking another step towards increasing its presence in emerging markets, with the acquisition of the remaining 51% interest in a joint venture established in China to develop ‘flu vaccines.

THE FTSE 100 closed up Up 29 @ 5803

THE DOW JONES at 4:45 Up 120 @ 12073

THE NASDAQ COMP at 4:45 Up 37 @ 2677



Exchange Rates

GBP – USD 1.6383

GBP - EURO 1.1322