RAMSEY CROOKALL & CO
2nd June 2011
Morning Report
The FTSE 100 is down around 1%, tracking declines in New York and Asia overnight as poor US manufacturing data sparks recovery fears. The grim manufacturing picture weighs on mining stocks in London. Additionally, 'peripheral' worries are back in the spotlight after Moody's cut its rating on Greece by three notches to Caa1. No major domestic data is due, so eyes will be on U.S. weekly jobless claims this afternoon.
B&Q owner Kingfisher is lower even after it saw year-on-year like-for-like sales growth of 3.3% in the 13 weeks ended 30 April. Total sales were also up 3.3%, while retail profit rose 19.1% in comparison with the year before. The number were boosted by warm weather and bank holidays, but the company is still decidedly cautious.
Elsewhere in retail, online fashion store ASOS is down even after it reported a profit before tax and exceptional items of £28.65m in the year to 31 March, up 41% from £20.34m achieved the year before, ahead of market consensus expectations of £27.5m.
Speciality chemicals group Johnson Matthey notched up pre-tax profits of £260.6m in the year to 31 March on revenue of £9,985m. Underlying profits before tax were £345.5m, up 36% from £254.1m the year before. Market expectations were for adjusted profits of £334.6m.
Engineering support services group Redhall sinks after it reported a weak set of first half figures following the loss of the Vivergo contract but it expects trading in the second half and beyond to be much improved. The niche engineer said adjusted pre-tax profit fell 70% at £1m during the six months ended 31 March 2011. Revenue for the half year fell to £64.3m from £65.4m in 2010.
THE FTSE 100 at 9:30 Down 56 @ 5872
THE DOW JONES closed Down 279 @ 12290
THE NASDAQ COMP closed Down 66 @ 2769
Exchange Rates
GBP – USD 1.6322
GBP - EURO 1.1342
Thursday 2nd, June 2011 10:10pm.
