RAMSEY CROOKALL & CO
EVENING REPORT 8 MARCH 2011
Mining stocks weighed heavily on the FTSE 100 as the price of gold and copper
moved lower today.
Precious metal miners Randgold Resources and African Barrick were the big fallers
in the sector, but even copper miner Antofagasta was under the cosh, despite
announcing it is to pay a huge special dividend . Profits last year smashed through
the $1bn mark as output rose and prices soared. Net profits last year rose by 58%
to $1.05bn, from $668m, on revenues up by 55% at $4.58bn from $2.96bn.
Elsewhere, Old Mutual has been through the mill this last six months, but strong growth
in new business sales, cost cutting and favourable exchange rates pushed profits up by
14% in 2010. The insurer was among the top risers in the FTSE 100, closing up 4p at
£13.77.
Spirax Sarco’s special divi did not match the one-off payment from Antofagasta, but the
steam trap and pump maker’s shareholders are unlikely to complain as the shares hit a
52-week high. On top of the 25p special dividend the full year dividend for 2010 has been
cranked up 19% to 43.0p from 36.1p, as the company announced record sales and profits.
Finally, BT and Vodafone went well after a bullish note yesterday from Morgan Stanley.
“Telecommunications is our preferred defensive sector,” the US broker said “It offers
greater potential for a positive growth surprise as well as offering a substantial dividend
yield boost over other sectors.” Vodafone and BT are both classed as “overweight”, with
price targets of 225p and 260p respectively. The stock closed up 3p at 181p.
THE FTSE 100 CLOSED UP 1 @ 5974
THE DOW JONES AT 4.40 IS UP 117 @ 12,207
THE NASDAQ COMP AT 4.40 IS UP 21 @ 2766
Exchange Rates
GBP – USD 1.6198
GBP - EURO 1.1616
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