RAMSEY CROOKALL & CO EVENING REPORT
11 MARCH 2011
An attempt at continuing the late-morning rally fizzled out over the lunch time
session, but prices are not as soft as might be expected given the array of bad
news out there, such as the Japanese earthquake, the Libyan situation and the
continuing concerns about European sovereign debt.
The insurance sector has been hit by worries over the possible effects of the
Japan earthquake. RSA, Legal & General and Prudential are suffering losses, as
are Lloyds underwriters such as Amlin and Catlin. The damage caused by the earthquake
and possible after-effects are difficult to assess at this stage.
Meanwhile, the soaring oil price is having its usual effect of damping demand for
shares in cruiser operator Carnival .
BP has moved to improve its green credentials with the purchase of Brazilian ethanol
and sugar producer Companhia Nacional de Açúcar e Álcool (CNAA) for $680m (£421m).
The acquisition is the oil giant’s biggest ever in the alternative energy sector.
While many recent company updates have pointed to further pressures on the consumer
as the after-effects of the recession kick-in, those that cater for the high-end of
the market appear untouched so far.
Finally, trendy sportswear retailer JD Sports Fashion has decided not to make an
offer for its struggling rival JJB Sports. JD said it had asked JJB for details of a
proposed restructuring of JJB’s property portfolio through a company voluntary
arrangement, but that it “received no further information whatsoever from JJB Sports.”
THE FTSE 100 CLOSED DOWN 16 @ 5285
THE DOW JONES AT 4.30 IS DOWN 24 @ 11,959
THE NASDAQ COMP AT 4.30 IS DOWN 5 @ 2695
Exchange Rates
GBP – USD 1.602
GBP - EURO 1.158
Friday 11th, March 2011 05:10pm.
