RAMSEYCROOKALL & CO
23rd May 2011 Afternoon Report
The FTSE 100 is down 1.5%, maintaining losses as travel-related stocks decline
amid reports the ash cloud from Iceland's volcanic eruption may reach the UK by
Tuesday. Worries about European sovereign debt continue to plague markets after
Fitch downgraded its rating on Greece and S&P cuts its outlook for Italy. Spain's
elections are also in focus.
Metals prices have taken a knock, hurting the share prices of mining stocks such as
South American copper group Antofagasta and Aquarius Platinum.
Property group British Land reported continuing strong demand for its retail and
office properties in spite of economic weakness as it posted a rise in profits and
net asset value (NAV) in the year to 31 March. At £256m, underlying pre-tax profits
were 9.9% higher than in the previous year. The value of the company’s portfolio
climbed by 6.9% to £9.6bn, which lifted NAV per share by 12.5% to 567p.
House builder and contractor Kier Group has trimmed its portfolio of Private Finance
Initiatives. The group has sold 50% stakes in the Oldham and Norwich Schools projects
to a HICL Infrastructure Company Limited and Kajima Partnerships Limited joint venture.
Stobart Group is higher after revenue topped the half billion pounds mark but
underlying profits at the logistics firm eased a tad in a year characterised by a
tough operating environment. Revenue rose to £500.4m from £447.7m the year before.
Market consensus had been for revenue of £489.3m. Underlying earnings before interest,
tax, depreciation and amortisation slipped to £57.2m from £57.4m, while underlying
profit before tax fell to £34.5m from £36.0m the year before.
THE FTSE 100 at 12:00 Down 94 @ 5854
THE DOW JONES closed Down 93 @ 12512
THE NASDAQ COMP closed Down 19 @ 2803
Exchange Rates
GBP – USD 1.6125
GBP - EURO 1.1513
Monday 23rd, May 2011 01:10pm.
