RAMSEY CROOKALL & CO
31 MARCH 2011 EVENING REPORT
The FTSE 100 failed to hold on to earlier gains, weighed down by weakness in banks
and retailers while energy and mining stocks rose as analysts urged investors to buy
companies with earnings growth outside the UK.
Oil services company Petrofac has won a contract worth more than $240m (£149m) with Shell
to develop facilities in the Majnoon field, Southern Iraq.
Dixons Retail had another bad day, as did department store group Debenhams, floor coverings
seller Carpetright, trendy clothes retailer SuperGroup, sportswear group Sports Direct
and homewares seller Dunelm.
Mothercare fell back after the babycare retailer saw margins squeezed in the quarter to 26
March after slashing prices to clear its autumn and winter stock amid a weak consumer
environment. Total sales were up by 10.2% from the same period the previous year, with international
operations leading the way. Sales in Britain were up by 4.7%, though they were down by 2.4% on a
like-for-like basis, which excludes the wholesale business.
Energy supplier Scottish and Southern Energy (SSE) is on track to report underlying profit before
tax for the full year in line with the consensus of analysts’ forecasts, which currently stands at
£1,301m. The company, which is about to enter its close period on Friday prior to publication of
full year results on 20 May, said it expects to deliver a full-year dividend increase of at least
2% more than Retail Price Index inflation, and of at least 74.5 pence per share.
THE FTSE 100 CLOSED DOWN 40 @ 5908
THE DOW JONES AT 4.40 IS DOWN 5 @ 12,345
THE NASDAQ COMP AT 4.40 IS DOWN 3 @ 2773
Exchange Rates
GBP – USD 1.6048
GBP - EURO 1.1309
Thursday 31st, March 2011 05:10pm.
