RAMSEY CROOKALL & CO
15 MARCH 2011 EVENING REPORT
Leading shares remain deep in the red and the best that can be said is that the situation
did not get materially worse over the lunch time session. The FTSE 100 closed down at 5695.
A third explosion at the Fukushima Daiichi nuclear power plant in Japan raised concerns of
a major radiation leak and sparked panic selling on the Tokyo stock market overnight. Traders
in London have not hit the panic button yet but the first two hours of trading today were hectic
and characterised by heavy losses for stocks expected to suffer as a result of the Japanese tragedy.
Miners were prominent among the big fallers, with Eurasian Natural Resources Corp, Fresnillo,
Lonmin and Antofagasta the hardest hit.
Elsewhere, luxury goods maker Burberry took another hammering, though RBS thinks the share
price fall is an over-reaction. While Japanese consumers have accounted for as much as 40-50%
of domestic and international related luxury goods demand over the past decade, Burberry's 2011
regional sales exposure is around 5-6%, compared with French company Hermes which has the highest
exposure of 19%, according to the broker.
Finally, holiday firm TUI Travel and airline IAG also suffered as consumers wondered which parts of
the world are safe to visit. Earthquakes in Asia Pacific and civil unrest in Africa and the Middle
East may well encourage holidaymakers to take the perceived safe option and stay at home.
THE FTSE 100 CLOSED DOWN 79 @ 5695
THE DOW JONES AT 4.40 IS DOWN 203 @ 11,789
THE NASDAQ COMP AT 4.40 IS DOWN 35 @ 2665
Exchange Rates
GBP – USD 1. 6076
GBP - EURO 1.1507
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