RAMSEY CROOKALL & CO
14 MARCH 2011 EVENING REPORT
London's blue chips turned lower again following falls on Wall Street as traders continue
to mull the possible effects of the Japanese earthquake.
Miners Rio Tinto, Xstrata, African Barrick and ENRC were the pick of the mining sector. Also
going well is temporary power solutions provider Aggreko, which may find its services called
upon extensively in the aftermath of the Japanese earthquake.
Insurers were mixed. A second explosion occurred at Japan’s Fukushima Dai-ichi nuclear plant on
Monday following a blast on Saturday. The blast occurred at the plant’s No. 3 reactor building,
according to Tokyo Electric Power, the operator. The power company said the reactor’s protective
containment shell remained intact after the blast. An explosion similar in nature destroyed the
plant’s No.1 reactor on Saturday.
London-based underwriter Chaucer said it does not expect any significant losses from the problems
afflicting three nuclear plants shut down in the North-East of Japan, but cannot yet quantify its
other exposure.
The statement has prevented the company’s share price from suffering the severe mark down that has
affected fellow underwriters Catlin and Beazley. Elsewhere in the insurance sector Aviva and RSA
Insurance are both off the pace.
Finally, the dangers associated with nuclear power stations seems to have persuaded the market to
reassess the merits of coal fired power stations, judging by the demand for shares in power
station operator Drax Group.
THE FTSE 100 CLOSED DOWN 53 @ 5775
THE DOW JONES AT 4.30 IS DOWN 131 @ 11,913
THE NASDAQ COMP AT 4.30 IS DOWN 30 @ 2685
Exchange Rates
GBP – USD 1. 6164
GBP - EURO 1. 1558
Monday 14th, March 2011 05:10pm.
